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The added worker effect of married women in Greece during the Great Depression

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  • Giannakopoulos, Nicholas

Abstract

This paper investigates the wife’s labour supply responses to their husband’s job loss during the economic crisis in Greece. Using data from the Labour Force Survey (2007-2014) we explicitly identify the labour market transitions of both spouses within the household. We found that women whose husbands involuntarily separated from their jobs have increased their participation into the labour market, confirming the theoretical predictions of the added worker effect. However, this result is not accompanied by higher employment rates. In fact, those women entering the labour market as a reaction to husband’s joblessness become unemployed. These findings intensify as crisis deepens. Our results have significant policy implications for the shadow wages of married women in Greece.

Suggested Citation

  • Giannakopoulos, Nicholas, 2015. "The added worker effect of married women in Greece during the Great Depression," MPRA Paper 66298, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66298
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    References listed on IDEAS

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    1. Daouli, Joan & Demoussis, Michael & Giannakopoulos, Nicholas & Lambropoulou, Nikolitsa, 2015. "The ins and outs of Greek unemployment in the Great Depression," MPRA Paper 66299, University Library of Munich, Germany.
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    17. Julia Bredtmann & Sebastian Otten & Christian Rulff, 2014. "Husband’s Unemployment and Wife’s Labor Supply – The Added Worker Effect across Europe," Economics Working Papers 2014-13, Department of Economics and Business Economics, Aarhus University.
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    20. Congregado, Emilio & Golpe, Antonio A. & van Stel, André, 2011. "Exploring the big jump in the Spanish unemployment rate: Evidence on an 'added-worker' effect," Economic Modelling, Elsevier, vol. 28(3), pages 1099-1105, May.
    21. Sonia Bhalotra & Marcela Umaña-Aponte, 2010. "The Dynamics of Women’s Labour Supply in Developing Countries," The Centre for Market and Public Organisation 10/235, The Centre for Market and Public Organisation, University of Bristol, UK.
    22. Joan J. Daouli & Michael Demoussis & Nicholas Giannakopoulos, 2004. "Participation of Greek Married Women in Full-Time Paid Employment," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(2), pages 19-33.
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    Citations

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    Cited by:

    1. Hélène PÉRIVIER, 2018. "Recession, austerity and gender: A comparison of eight European labour markets," International Labour Review, International Labour Organization, vol. 157(1), pages 1-37, March.
    2. Fackler, Daniel & Hank, Eva, 2016. "Who buffers income losses after job displacement? The role of alternative income sources, the family, and the state," IWH Discussion Papers 28/2016, Halle Institute for Economic Research (IWH).
    3. Annarita Macchioni Giaquinto & Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2021. "Labour supply and informal care responses to health shocks within couples: evidence from the UKHL," Working Papers 2021:11, Department of Economics, University of Venice "Ca' Foscari".
    4. Hélène Périvier, 2016. "Recession, austerity and gender," Working Papers hal-03459410, HAL.
    5. Hélène Périvier, 2018. "Recession, Austerity and Gender: A Comparison of Eight European Labour Markets," SciencePo Working papers Main hal-03458445, HAL.
    6. Annarita Macchioni Giaquinto & Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2022. "Labor supply and informal care responses to health shocks within couples: Evidence from the UK," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2700-2720, December.
    7. repec:spo:wpmain:info:hdl:2441/5e7470pjqo8p98ghofg166s7u2 is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/5e7470pjqo8p98ghofg166s7u2 is not listed on IDEAS
    9. Daniel Fackler & Eva Hank, 2016. "Who Buffers Income Losses after Job Displacement? The Role of Alternative Income Sources, the Family, and the State," SOEPpapers on Multidisciplinary Panel Data Research 863, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Hank, Eva & Fackler, Daniel, 2017. "Who buffers income losses after job displacement? The role of alternative income sources, the family, and the state," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168098, Verein für Socialpolitik / German Economic Association.
    11. Hélène Périvier, 2018. "Recession, Austerity and Gender: A Comparison of Eight European Labour Markets," Post-Print hal-03458445, HAL.
    12. Hélène Périvier, 2016. "Recession, austerity and gender," SciencePo Working papers Main hal-03459410, HAL.
    13. repec:spo:wpmain:info:hdl:2441/41isuana4r9csqvq548poclp6e is not listed on IDEAS
    14. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2018. "Immigrants’ employment and the business cycle in Spain: taking account of gender and origin," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 463-490, August.
    15. repec:hal:spmain:info:hdl:2441/41isuana4r9csqvq548poclp6e is not listed on IDEAS

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    More about this item

    Keywords

    Added worker effect; Labour force participation; Women; Greece;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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