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The rise of low-skill service employment: The role of dual-earner households

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  • Lee, Jongkwan
  • Shim, Myungkyu
  • Yang, Hee-Seung

Abstract

This paper unveils an important but unexplored channel for the growth of low-skill service employment between 1960 and 2010: the spillover from dual-earner households. In particular, we analyze the cross-city association between variation in dual-earner households and employment growth in home production substitutes. To address concerns about endogeneity, we use the fact that married working women were extremely concentrated on administrative support occupations, while their birth places were heterogeneously distributed. Our results show that one more dual-earner couple creates 0.3 low-skill service jobs in local economies, and the effect mainly comes from the home production service sector.

Suggested Citation

  • Lee, Jongkwan & Shim, Myungkyu & Yang, Hee-Seung, 2022. "The rise of low-skill service employment: The role of dual-earner households," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 255-273.
    • Handle: RePEc:eee:jeborg:v:202:y:2022:i:c:p:255-273
    DOI: 10.1016/j.jebo.2022.08.005
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    Cited by:

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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