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The added-worker effect in the Netherlands before and during the Great Recession

Author

Listed:
  • Emile Cammeraat

    (CPB Netherlands Bureau for Economic Policy Analysis, Leiden University)

  • Egbert Jongen

    (CPB Netherlands Bureau for Economic Policy Analysis, Leiden University and IZA)

  • Pierre Koning

    (Vrije Universiteit Amsterdam, Tinbergen Institute and IZA)

Abstract

We study the added-worker effect in the Netherlands with large-scale administrative panel data for the period 1999–2015. Conditioning on samples with similar employment histories, we employ differences-in-differences to estimate the effect of a male partner’s unemployment shock on the female partner’s income. We find a modest added-worker effect of 2–5% of the male partner’s income loss, as compared to the much larger compensating effect from social insurance schemes. The added-worker effect largely disappeared at the beginning of the Great Recession, but resurfaced a few years later. Over the years, profits from self-employment have become more important in dealing with unemployment shocks.

Suggested Citation

  • Emile Cammeraat & Egbert Jongen & Pierre Koning, 2023. "The added-worker effect in the Netherlands before and during the Great Recession," Review of Economics of the Household, Springer, vol. 21(1), pages 217-243, March.
    • Handle: RePEc:kap:reveho:v:21:y:2023:i:1:d:10.1007_s11150-021-09595-2
    DOI: 10.1007/s11150-021-09595-2
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    References listed on IDEAS

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    Cited by:

    1. Mattis Beckmannshagen & Rick Glaubitz, 2023. "Is There a Desired Added Worker Effect?: Evidence from Involuntary Job Losses," SOEPpapers on Multidisciplinary Panel Data Research 1200, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    C21; H31; J21;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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