IDEAS home Printed from https://ideas.repec.org/p/ivi/wpasad/2000-07.html
   My bibliography  Save this paper

Family Ties And Unemployment

Author

Listed:
  • María Dolores Guilló

    () (Universidad de Alicante)

  • Antonia Díaz

    (Universidad Carlos III de Madrid)

Abstract

In this paper we build a model economy in which the prevailing family structure arises endogenously as a response to labor market conditions. In this model the members of the household (parents and young adults) either work in the market, search for a job, or produce a household good. Parents feel altruistically towards their offspring. Our first finding is that search efforts of the unemployed members of the family are strategic substitutes. The second one is that, everything else equal, young adults leave their parents' house if they receive a sufficiently high wage; otherwise, they stay. In the latter case, both young adult's and spouse's search efforts are lower, since the spouse's opportunity cost of working in the market is greater when the employed young adult stays at home. As a result, both youth's and female spouse's unemployment rates are higher. This result is in line with the evidence we have for Spain.

Suggested Citation

  • María Dolores Guilló & Antonia Díaz, 2000. "Family Ties And Unemployment," Working Papers. Serie AD 2000-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasad:2000-07
    as

    Download full text from publisher

    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2000-07.pdf
    File Function: Fisrt version / Primera version, 2000
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bentolila, Samuel & Ichino, Andrea, 2000. "Unemployment and Consumption: Are Job Losses Less Painful near the Mediterranean?," CEPR Discussion Papers 2539, C.E.P.R. Discussion Papers.
    2. Maite Martínez-Granado & Javier Ruiz-Castillo, 2002. "The decisions of Spanish youth: A cross-section study," Journal of Population Economics, Springer;European Society for Population Economics, pages 305-330.
    3. Namkee Ahn & Arantza Ugidos, 1996. "The effects of the labor market situation of parents on children: inheritance of unemployment," Investigaciones Economicas, Fundación SEPI, vol. 20(1), pages 23-41, January.
    4. Olga CantÛ-S·nchez & Magda Mercader-Prats, "undated". "Poverty among children and youth in Spain: The role of parents and youth employment status," Studies on the Spanish Economy 46, FEDEA.
    5. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    6. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 1998. "Household Labor Supply, Sharing Rule and the Marriage Market," Cahiers de recherche 9810, Université Laval - Département d'économique.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paola Giuliano, 2007. "Living Arrangements in Western Europe: Does Cultural Origin Matter?," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 927-952, September.

    More about this item

    Keywords

    Family Ties; Household Good; Unemployment.;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2000-07. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición). General contact details of provider: http://edirc.repec.org/data/ievages.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.