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The Response of Wives f Labor Supply to Husbands f Job Loss

Author

Listed:
  • Miki Kohara

    (Associate Professor, Osaka School of International Public Policy (OSIPP))

Abstract

This paper examines how Japanese wives react to their husbands f involuntary job loss, and tests the existence of complementarity of a wife fs labor supply to her husband fs. Utilizing panel data on Japanese households from 1993 to 2004, we found that wives f labor supply is stimulated when husbands suffer involuntary job loss. The detailed statistics show that not only do working wives raise their labor hours but also nonworking wives begin to participate in the labor market. The added worker effect is evident during the period of job insecurity in Japan following the mid-1990s.

Suggested Citation

  • Miki Kohara, 2008. "The Response of Wives f Labor Supply to Husbands f Job Loss," OSIPP Discussion Paper 08E007, Osaka School of International Public Policy, Osaka University.
  • Handle: RePEc:osp:wpaper:08e007
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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2008/DP2008E007.pdf
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    References listed on IDEAS

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    1. A. Bhargava & L. Franzini & W. Narendranathan, 2006. "Serial Correlation and the Fixed Effects Model," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 4, pages 61-77 World Scientific Publishing Co. Pte. Ltd..
    2. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July.
    3. Josep Pijoan-Mas, 2006. "Precautionary Savings or Working Longer Hours?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(2), pages 326-352, April.
    4. Mace, Barbara J, 1991. "Full Insurance in the Presence of Aggregate Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 928-956, October.
    5. Spletzer, James R, 1997. "Reexamining the Added Worker Effect," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 417-427, April.
    6. Fernandes, Reynaldo & de Felicio, Fabiana, 2005. "The Entry of the Wife into the Labor Force in Response to the Husband's Unemployment: A Study of the Added Worker Effect in Brazilian Metropolitan Areas," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 887-911, July.
    7. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    8. Orazio Attanasio & Hamish Low & Virginia Sánchez-Marcos, 2005. "Female Labor Supply As Insurance Against Idiosyncratic Risk," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 755-764, 04/05.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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    Cited by:

    1. Kang Chandararot. & Sok Sina. & Liv Dannet., 2009. "Rapid assessment on the impact of the financial crisis in Cambodia," ILO Working Papers 994327263402676, International Labour Organization.
    2. Doreen Triebe, 2015. "The Added Worker Effect Differentiated by Gender and Partnership Status: Evidence from Involuntary Job Loss," SOEPpapers on Multidisciplinary Panel Data Research 740, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Added worker effects; Female labor supply; Within-family risk-sharing; Household panel data; Japan;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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