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Evidence of Added Worker Effect from the 2008 Economic Crisis

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  • Ayhan, Sinem H.

    (Institute for East and Southeast European Studies, Regensburg)

Abstract

This paper contributes to the research on interdependencies in spousal labor supply by analyzing labor supply response of married women to their husbands' job losses ("added worker effect"). It empirically tests the hypothesis of added worker effect relying on a case study on Turkey during the global economic crisis of 2008. Identification is achieved by exploiting the exogenous variation in the output of male-dominated sectors that were hit hard by the crisis and the high degree of gender segmentation that characterizes the Turkish labor market. Findings based on the instrumental variable approach suggest that the probability of entering the labor force for a woman increases by up to 29% in response to her husband's unemployment. However the effect is not contemporaneous; it appears with a quarter of lag and remains existent only for two quarters.

Suggested Citation

  • Ayhan, Sinem H., 2015. "Evidence of Added Worker Effect from the 2008 Economic Crisis," IZA Discussion Papers 8937, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8937
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    References listed on IDEAS

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    Cited by:

    1. Katrin Huber & Erwin Winkler, 2016. "All We Need is Love? Trade-Adjustment, Inequality, and the Role of the Partner," SOEPpapers on Multidisciplinary Panel Data Research 873, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Abbasoglu Ozgoren, Ayse & Ergöçmen, Banu & Tansel, Aysit, 2017. "Birth and Employment Transitions of Women in Turkey: Conflicting or Compatible Roles?," IZA Discussion Papers 11238, Institute of Labor Economics (IZA).
    3. Giannakopoulos, Nicholas, 2015. "The added worker effect of married women in Greece during the Great Depression," MPRA Paper 66298, University Library of Munich, Germany.
    4. Adalgiso Amendola & Roberto Dell’Anno & Lavinia Parisi, 2020. "How did the Great Recession Affect Gender Disparity in Europe? An Analysis by a Multidimensional Deprivation Approach," Applied Economics, Taylor & Francis Journals, vol. 52(26), pages 2780-2794, May.
    5. Bellou, Andriana & Cardia, Emanuela, 2021. "The Great Depression and the rise of female employment: A new hypothesis," Explorations in Economic History, Elsevier, vol. 80(C).
    6. 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.
    7. Ayse Abbasoglu Ozgoren & A. Banu Ergöçmen & Aysıt Tansel, 2018. "Birth and employment transitions of women in Turkey: The emergence of role incompatibility," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 39(46), pages 1241-1290.

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    More about this item

    Keywords

    global economic crisis; discouraged worker effect; added worker effect; spousal labor supply;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D10 - Microeconomics - - Household Behavior - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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