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Household Unemployment and the Labour Supply of Married Women

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  • Paul Bingley
  • Ian Walker

Abstract

A recent reform to the UK unemployment insurance (UI) system has reduced the duration of entitlement from 12 to six months. The UI and welfare systems interact in the UK in such a way that exhaustion of UI for married individuals has potentially large disincentive effects on the labour supply of spouses. A model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives. We distinguish between transfer programme induced incentive effects; correlation between labour supply and wages within couples; complementarity between the leisure times of spouses; and a discouraged worker effect. Copyright 2001 by The London School of Economics and Political Science
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Suggested Citation

  • Paul Bingley & Ian Walker, 1996. "Household Unemployment and the Labour Supply of Married Women," Keele Department of Economics Discussion Papers (1995-2001) 96/20, Department of Economics, Keele University.
  • Handle: RePEc:kee:keeldp:96/20
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    1. repec:ese:iserwp:2015-04 is not listed on IDEAS
    2. Vincent Law, 2011. "Welfare Policy and Labour Supply of Immigrants in Australia," Crawford School Research Papers 1109, Crawford School of Public Policy, The Australian National University.
    3. Laurine Martinoty, 2014. "Intra-Household Coping Mechanisms in Hard Times: the Added Worker Effect in the 2001 Argentine Economic Crisis," Post-Print halshs-01076566, HAL.
    4. Sisi Zhang, 2014. "Wage shocks, household labor supply, and income instability," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 767-796, July.
    5. Bryan, Mark L. & Longhi, Simonetta, 2013. "Couples' Labour Supply Responses to Job Loss: Boom and Recession Compared," IZA Discussion Papers 7775, Institute for the Study of Labor (IZA).
    6. Bryan, Mark L. & Longhi, Simonetta, 2013. "Couples’ labour supply responses to job loss: boom and recession compared," ISER Working Paper Series 2013-20, Institute for Social and Economic Research.
    7. Chalmers, J. & Kalb, G., 2000. "Are Casual Jobs a Freeway to Permanent Employment?," Monash Econometrics and Business Statistics Working Papers 8/00, Monash University, Department of Econometrics and Business Statistics.

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