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Benefits and the Labour Supply of Women Married to Unemployed Men

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  • Kell, Michael
  • Wright, Jane

Abstract

This paper seeks to explain the low labor force participation rates of women married to unemployed men in the reducing the net increment to household income that would result from the wife's employment. Simple probit models of the participation and part-time/full-time decisions are estimated using a large cross-sectional data set. The results confirm the importance of severe disincentive effects, controlling for labor market conditions. Income-related benefits are found to create worse problems than national insurance benefits; both types impede part-time work in particular. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • Kell, Michael & Wright, Jane, 1990. "Benefits and the Labour Supply of Women Married to Unemployed Men," Economic Journal, Royal Economic Society, vol. 100(400), pages 119-126, Supplemen.
    • Handle: RePEc:ecj:econjl:v:100:y:1990:i:400:p:119-26
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    Cited by:

    1. Alfred Michael Dockery & Paul Flatau, 2008. "An analysis of the impact of tax and welfare reform measures on effective marginal tax rates in Australia 1982-2002," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(3), pages 203-226.
    2. Helen Kowalewska & Agnese Vitali, 2020. "Work/Family Arrangements across the OECD: Incorporating the Female-Breadwinner Model," LIS Working papers 769, LIS Cross-National Data Center in Luxembourg.
    3. Bredtmann, Julia & Otten, Sebastian & Rulff, Christian, 2014. "Husband's Unemployment and Wife's Labor Supply – The Added Worker Effect across Europe," Ruhr Economic Papers 484, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Browning, Martin & Crossley, Thomas F., 2001. "Unemployment insurance benefit levels and consumption changes," Journal of Public Economics, Elsevier, vol. 80(1), pages 1-23, April.
    5. Aysit Tansel & Zeynel Abidin Ozdemir, 2016. "Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada?," ERC Working Papers 1717, ERC - Economic Research Center, Middle East Technical University, revised Dec 2017.
    6. Aedin Doris, 1999. "The Means Testing of Benefits and the Labour Supply of the wives of Unemployed Men: Results from a Fixed Effects Model," Economics Department Working Paper Series n930999, Department of Economics, National University of Ireland - Maynooth.
    7. Aedin Doris;, 1999. "The Means Testing Of Benefits And The Labour Supply Of The Wives Of Unemployed Men: Results From A Mover-Stayer Model," Economics Department Working Paper Series n940999, Department of Economics, National University of Ireland - Maynooth.
    8. Aysit Tansel & Zeynel Abidin Ozdemir, 2018. "Unemployment invariance hypothesis, added and discouraged worker effects in Canada," International Journal of Manpower, Emerald Group Publishing Limited, vol. 39(7), pages 929-936, October.
    9. repec:zbw:rwirep:0484 is not listed on IDEAS
    10. Janet Netz & Jon Haveman, 1999. "All In The Family: Family, Income, And Labor Force Attachment," Feminist Economics, Taylor & Francis Journals, vol. 5(3), pages 85-106.
    11. Nordberg, Morten, 2007. "The Total Tax on Labour Income," Memorandum 05/2007, Oslo University, Department of Economics.

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