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Household Unemployment and the Labor Supply of Married Women

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  • Bingley, Paul
  • Walker, Ian

Abstract

A recent reform to the UK unemployment insurance (UI) system has reduced the duration of entitlement from 12 to six months. The UI and welfare systems interact in the UK in such a way that exhaustion of UI for married individuals has potentially large disincentive effects on the labour supply of spouses. A model of labour supply is estimated for married women allowing for endogenous unemployment durations of husbands and wives. We distinguish between transfer programme induced incentive effects; correlation between labour supply and wages within couples; complementarity between the leisure times of spouses; and a discouraged worker effect. Copyright 2001 by The London School of Economics and Political Science

Suggested Citation

  • Bingley, Paul & Walker, Ian, 2001. "Household Unemployment and the Labor Supply of Married Women," Economica, London School of Economics and Political Science, vol. 68(270), pages 157-185, May.
    • Handle: RePEc:bla:econom:v:68:y:2001:i:270:p:157-85
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    Cited by:

    1. Jonathan Briody & Orla Doyle & Cecily Kelleher, 2019. "The Effect of the Great Recession on Health: A longitudinal study of Irish Mothers 2001-2011," Working Papers 201912, Geary Institute, University College Dublin.
    2. Nilsson, William, 2005. "Equality of Opportunity, Heterogeneity and Poverty," Umeå Economic Studies 652, Umeå University, Department of Economics.
    3. Laurine Martinoty, 2014. "Intra-Household Coping Mechanisms in Hard Times: the Added Worker Effect in the 2001 Argentine Economic Crisis," Post-Print halshs-01076566, HAL.
    4. repec:ese:iserwp:2015-04 is not listed on IDEAS
    5. Sisi Zhang, 2014. "Wage shocks, household labor supply, and income instability," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 767-796, July.
    6. Vincent Law, 2011. "Welfare Policy and Labour Supply of Immigrants in Australia," Crawford School Research Papers 1109, Crawford School of Public Policy, The Australian National University.
    7. Bryan, Mark L. & Longhi, Simonetta, 2013. "Couples' Labour Supply Responses to Job Loss: Boom and Recession Compared," IZA Discussion Papers 7775, Institute of Labor Economics (IZA).
    8. L. Bryan, Mark & Longhi, Simonetta, 2013. "Couples’ labour supply responses to job loss: boom and recession compared," ISER Working Paper Series 2013-20, Institute for Social and Economic Research.

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