Family Ties And Unemployment
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.
|Date of creation:||Mar 2000|
|Date of revision:|
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- 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.
- Bentolila, S. & Ichino, A., 2000. "Unemployment and Consumption: are Job Losses Less Painful Near the Mediterranean?," Papers 0010, Centro de Estudios Monetarios Y Financieros-.
- Samuel Bentolila & Andrea Ichino, 2000. "Unemployment and Consumption: Are Job Losses Less Painful near the Mediterranean?," CESifo Working Paper Series 372, CESifo Group Munich.
- Maite Martínez & J. Ruiz Castillo, .
"The decisions of Spanish youth: A cross-section study,"
Studies on the Spanish Economy
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- Chiappori, Pierre-Andre, 1992.
"Collective Labor Supply and Welfare,"
Journal of Political Economy,
University of Chicago Press, vol. 100(3), pages 437-67, June.
- 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.
- 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.
- Olga Cantó-Sánchez & Magda Mercader-Prats, . "Poverty among children and youth in Spain: The role of parents and youth employment status," Studies on the Spanish Economy 46, FEDEA.
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