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Employment Contract Matching: An Analysis of Dual Earner Couples and Working Households


  • Sarah Brown


  • Lisa Farrell
  • John G Sessions


We explore the significance of intra-couple and intra -household influences on three broad types of employment contracts: self-employment, performance related pay, and salaried employment. Individuals may pool income risk with their partners by holding a diversified portfolio of employment contracts, introducing intra-household risk pooling. Alternatively, employment contract matching may occur whereby individuals within couples or households are employed under similar contracts. Our empirical analysis, based on cross-section data drawn from the British Family Expenditure Surveys 1996 to 2000, provides evidence of employment contract matching both within dual earner couples and, to a lesser extent, in the context of working household members.

Suggested Citation

  • Sarah Brown & Lisa Farrell & John G Sessions, 2001. "Employment Contract Matching: An Analysis of Dual Earner Couples and Working Households," Discussion Papers in Economics 01/9, Department of Economics, University of Leicester.
  • Handle: RePEc:lec:leecon:01/9

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    References listed on IDEAS

    1. Demetriades, Panicos O. & Luintel, Kul B., 2001. "Financial restraints in the South Korean miracle," Journal of Development Economics, Elsevier, vol. 64(2), pages 459-479, April.
    2. Demetriades, Panicos O. & P. Devereux, Michael & Luintel, Kul B., 1998. "Productivity and financial sector policies: Evidence from South East Asia," Journal of Economic Behavior & Organization, Elsevier, vol. 35(1), pages 61-82, March.
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    Cited by:

    1. Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
    2. Sarah Brown & Lisa Farrell & Mark N. Harris & John G. Sessions, 2006. "Risk preference and employment contract type," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(4), pages 849-863.

    More about this item


    Dual Earner Couples; Employment Contract Matching; Self-employment; Assortative Mating;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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