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The Effect of Unemployment on Household Composition and Doubling Up

  • Emily E. Wiemers
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    Doubling up with family and friends is one way in which individuals and families can cope with job loss but there is still relatively little work on the extent to which people use co-residence to weather a spell of unemployment. This project uses data from the Survey of Income and Program Participation to provide evidence on the relationship between household composition and unemployment across working ages focusing on differences in behavior by educational attainment. Using the SIPP panels, I find that individuals who become unemployed are twice as likely to move in with other people. Moving into shared living arrangements in response to unemployment is not evenly spread across the distribution of educational attainment; it is most prevalent among individuals with the less than a high school degree and those with at least some college.

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    File URL: http://repec.umb.edu/RePEc/files/2014_05.pdf
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    Paper provided by University of Massachusetts Boston, Economics Department in its series Working Papers with number 2014_05.

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    Length: 45 pages
    Date of creation: Apr 2014
    Date of revision:
    Handle: RePEc:mab:wpaper:2014_05
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    Web page: http://economics.umb.edu

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    1. Marco Manacorda & Enrico Moretti, 2006. "Why do Most Italian Youths Live with Their Parents? Intergenerational Transfers and Household Structure," Journal of the European Economic Association, MIT Press, vol. 4(4), pages 800-829, 06.
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    3. Martin Browning & Thomas Crossley, 1996. "Unemployment Insurance Benefit Levels and Consumption Changes," Discussion Papers 96-11, University of Copenhagen. Department of Economics.
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    6. Dora L. Costa, 1999. "A House of Her Own: Old Age Assistance and the Living Arrangements of Older Nonmarried Women," NBER Working Papers 6217, National Bureau of Economic Research, Inc.
    7. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, 1995. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," NBER Working Papers 5378, National Bureau of Economic Research, Inc.
    8. Rosenzweig, Mark R & Wolpin, Kenneth I, 1994. "Parental and Public Transfers to Young Women and Their Children," American Economic Review, American Economic Association, vol. 84(5), pages 1195-1212, December.
    9. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-98, December.
    10. Lancaster, Tony, 2000. "The incidental parameter problem since 1948," Journal of Econometrics, Elsevier, vol. 95(2), pages 391-413, April.
    11. Susan Dynarski & Jonathan Gruber, 1997. "Can Families Smooth Variable Earnings?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 229-303.
    12. Jeffrey Grogger, 2003. "Welfare Transitions in the 1990s: The Economy, Welfare Policy, and the EITC," NBER Working Papers 9472, National Bureau of Economic Research, Inc.
    13. Kathleen Mcgarry & Robert Schoeni, 2000. "Social security, economic growth, and the rise in elderly widows’ independence in the twentieth century," Demography, Springer, vol. 37(2), pages 221-236, May.
    14. Greg Kaplan, 2012. "Moving Back Home: Insurance against Labor Market Risk," Journal of Political Economy, University of Chicago Press, vol. 120(3), pages 446 - 512.
    15. Ermisch, John, 1999. "Prices, Parents, and Young People's Household Formation," Journal of Urban Economics, Elsevier, vol. 45(1), pages 47-71, January.
    16. Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 546-72, July.
    17. Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March.
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