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Job Insecurity Within the Household: Are Australian Householders Caring When it Comes to Risk Sharing?

Author

Listed:
  • Francesco Mariotti

    (University of Trento)

  • Maria Dickson

    (University of Trento)

  • Karen Mumford

    (University of York and IZA)

  • Yolanda Pena-Boquete

    (University of Vigo)

Abstract

We investigate perceived job security risk and the distribution of non-labour income between spouses in a household context. In the process, the restrictions implied by Beckerian-caring preferences in the Chiappori (2002) Collective model are considered, and estimates of the sharing rule are derived. The findings support the idea of household formation as a tool that caring partners use to share risk. Our results provide further insight as to how unemployment risk may affect interaction between Australian spouses.

Suggested Citation

  • Francesco Mariotti & Maria Dickson & Karen Mumford & Yolanda Pena-Boquete, 2016. "Job Insecurity Within the Household: Are Australian Householders Caring When it Comes to Risk Sharing?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(2), pages 77-90.
    • Handle: RePEc:ozl:journl:v:19:y:2016:i:2:p:77-90
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    References listed on IDEAS

    as
    1. Patricia Apps & Yuri Andrienko & Ray Rees, 2014. "Risk and Precautionary Saving in Two-Person Households," American Economic Review, American Economic Association, vol. 104(3), pages 1040-1046, March.
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    5. Yekaterina Chzhen & Karen Mumford & Catia Nicodemo, 2013. "The Gender Pay Gap in the Australian Private Sector: Is Selection Relevant Across the Earnings Distribution?," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 367-381, September.
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    Cited by:

    1. Zhao, Yuejun, 2023. "Job displacement and the mental health of households: Burden sharing counteracts spillover," Labour Economics, Elsevier, vol. 81(C).
    2. Botha, Ferdi & Ribar, David C., 2023. "For worse? Financial hardships and intra-household resource allocation among Australian couples," Economic Modelling, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    household; labour supply; job-insecurity; collective; bargaining;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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