Cultural expenditure of those who enter (or exit) unemployment

We estimate the effect of unemployment on cultural expenditure and income, and the income elasticity of cultural demand. When a household member enters an unemployment spell, households reduce cultural expenditure and their income falls. Unemployment does not affect participation in cultural markets, and participating households exhibit larger income elasticity. The reduction in cultural expenditure and income is larger for men, and individuals who hold a tertiary education degree tend to experience a larger income fall and a smaller cultural expenditure reduction. We find that the reduction in cultural expenditure is larger during a recession, while the effect of unemployment on household income does not fluctuate much over the business cycle.