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Youth living in a couple. How women's labour supply adapts to the crisis. The case of Spain

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Listed:
  • Tindara Addabbo

    ()

  • Paula Rodr íguez-Modroño

    ()

  • Lina Gálvez-Muñoz

    ()

Abstract

The focus of this paper is on the effects of the Great Recession on young women's labour supply decision. Given the deep effect of the Great Recession on the Spanish labour market and in particular on youth labour supply, in the empirical part of this paper we focus on the Spanish labour market and estimate women's labour supply models by age groups, with a special focus on those aged 20 to 29 and 30 to 39 to detect how young women living in couples show different labour supply probabilities according to their partner's labour market status by using EU-SILC 2007 and 2012 micro data for Spain. We correct also for the non random selection of women living in couple in the younger age groups. This first step of analysis allows us to detect a negative effect, on the likelihood of forming a new household, of precarious employment conditions. The results of our analysis on women's labour supply by age group confirm the discouragement effect of young children for the youngest mothers' labour supply and also a positive effect of being an owner of a house with a mortgage. The literature shows that different effects can be at work with the crisis: the added-worker effect (AWE), showing a countercyclical behaviour of labour supply that implies an increase in individual labour supply in response to transitory shocks in his/her partner’s earnings, and the procyclical discouraged-worker effect.The results of our estimation support the existence of AWE in 2012 for young women living in couples. If in 2012 the discouragement effect dominates only for women older than 40, in 2007 it dominates also amongst younger women. Women's higher propensity to enter the labour market when their partner becomes unemployed or is persistently unemployed coupled with their likelihood to be inactive in the presence of young children would call for labour market policies targeted towards young women who are also more likely to withdraw from the labour market in presence of children. Childcare facilities could mitigate the latter effect and produce a more continuous workprofile thus avoiding the negative effect of work experience interruptions on labour supply over women's life cycle.

Suggested Citation

  • Tindara Addabbo & Paula Rodr íguez-Modroño & Lina Gálvez-Muñoz, 2014. "Youth living in a couple. How women's labour supply adapts to the crisis. The case of Spain," Center for the Analysis of Public Policies (CAPP) 0114, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
  • Handle: RePEc:mod:cappmo:0114
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    References listed on IDEAS

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    1. Maria Chiuri & Daniela Del Boca, 2010. "Home-leaving decisions of daughters and sons," Review of Economics of the Household, Springer, vol. 8(3), pages 393-408, September.
    2. Alfonso ARPAIA & Nicola CURCI, "undated". "EU labour market behaviour during the Great Recession," Working Papers wp2010-6, Department of the Treasury, Ministry of the Economy and of Finance.
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    4. Marcello Signorelli & Misbah Choudhry & Enrico Marelli, 2012. "The Impact of Financial Crises on Female Labour," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(3), pages 413-433, July.
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    6. Francesca Modena & Concetta Rondinelli, 2011. "Leaving home and housing prices. The experience of Italian youth emancipation," Department of Economics Working Papers 1101, Department of Economics, University of Trento, Italia.
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    Cited by:

    1. Enrico MARELLI & Elena VAKULENKO, 2014. "Youth Unemployment in Italy and Russia: Aggregate Trends and the Role of Individual Determinants," Working papers of the Department of Economics - University of Perugia (IT) 0001/2014, Università di Perugia, Dipartimento Economia.

    More about this item

    Keywords

    Labor supply; Great Recession; Gender; added-worker effect; discouragedworker effect; youth labor supply;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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