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On Households and Unemployment

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  • Sekyu Choi

    (Universitat Autonoma de Barcelona)

Abstract

Unemployment rates are significantly lower for married workers in the U.S. Motivated by this and labor market flow differences across individuals of different marital states, we develop an incomplete markets model to account for the facts. Using the model, we attempt to answer two questions. First, how much of the difference in unemployment rates between married and non-married individuals can be accounted for by self-insurance inside the household versus intrinsic differences between the two groups? Second, how important has been the increase in the share of non-married households in the labor force during the last three decades to explain the evolution of the long-run unemployment rate of the economy?

Suggested Citation

  • Sekyu Choi, 2013. "On Households and Unemployment," 2013 Meeting Papers 992, Society for Economic Dynamics.
    • Handle: RePEc:red:sed013:992
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    References listed on IDEAS

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