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Is there still an added-worker effect?

Author

Listed:
  • Chinhui Juhn
  • Simon M. Potter

Abstract

Using matched March Current Population Surveys, we examine labor market transitions of husbands and wives. We find that the ?added-worker effect??the greater propensity of nonparticipating wives to enter the labor force when their husbands exit employment?is still important among a subset of couples, but that the overall value of marriage as a risk-sharing arrangement has diminished because of the greater positive co-movement of employment within couples. While positive assortative matching on education did increase over time, this shift in the composition of couple types alone cannot account for the increased positive correlation.>

Suggested Citation

  • Chinhui Juhn & Simon M. Potter, 2007. "Is there still an added-worker effect?," Staff Reports 310, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednsr:310
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    Citations

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    Cited by:

    1. Elsby, Michael W.L. & Hobijn, Bart & Şahin, Ayşegül, 2015. "On the importance of the participation margin for labor market fluctuations," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 64-82.
    2. Akitoby Bernardin & Honda Jiro & Miyamoto Hiroaki, 2022. "Countercyclical fiscal policy and gender employment: evidence from the G-7 countries," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-23, January.
    3. Doepke, M. & Tertilt, M., 2016. "Families in Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1789-1891, Elsevier.
    4. Gunseli Berik & Ebru Kongar, 2012. "Time Use of Mothers and Fathers in Hard Times: The US Recession of 2007-09," Economics Working Paper Archive wp_726, Levy Economics Institute.
    5. Julio Guzman, 2014. "Social Protection and Private Coping Strategies During Recessions: Evidence from Chile," Working Papers wp_041, Adolfo Ibáñez University, School of Government.
    6. Verdugo, Gregory & Allègre, Guillaume, 2020. "Labour force participation and job polarization: Evidence from Europe during the Great Recession," Labour Economics, Elsevier, vol. 66(C).
    7. Razzu, Giovanni & Singleton, Carl, 2016. "Gender and the business cycle: An analysis of labour markets in the US and UK," Journal of Macroeconomics, Elsevier, vol. 47(PB), pages 131-146.
    8. Haomin Wang, 2019. "Intra-Household Risk Sharing and Job Search over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 165-182, October.
    9. repec:spo:wpmain:info:hdl:2441/4igrl22i129kl9t3bjsriribbs is not listed on IDEAS
    10. Regis Barnichon & Andrew Figura, 2016. "Declining Desire to Work and Downward Trends in Unemployment and Participation," NBER Macroeconomics Annual, University of Chicago Press, vol. 30(1), pages 449-494.
    11. Stefania Albanesi, 2019. "Changing Business Cycles: The Role of Women's Employment," Working Papers 2019-021, Human Capital and Economic Opportunity Working Group.
    12. Haomin Wang, 2019. "Intra-Household Risk Sharing and Job Search over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 165-182, October.
    13. John Coglianese & Brendan M. Price, 2020. "Income in the Off-Season: Household Adaptation to Yearly Work Interruptions," Upjohn Working Papers 20-337, W.E. Upjohn Institute for Employment Research.
    14. Sisi Zhang, 2014. "Wage shocks, household labor supply, and income instability," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 767-796, July.
    15. Gunseli Berik & Ebru Kongar, 2011. "Time Use of Mothers and Fathers in Hard Times and Better Times: The US Business Cycle of 2003-10," Economics Working Paper Archive wp_696, Levy Economics Institute.
    16. Shwetlena Sabarwal & Nistha Sinha & Mayra Buvinic, 2011. "How Do Women Weather Economic Shocks? What We Know," World Bank Publications - Reports 10113, The World Bank Group.
    17. repec:hal:spmain:info:hdl:2441/4igrl22i129kl9t3bjsriribbs is not listed on IDEAS
    18. Stefania Albanesi & Maria Jose Prados, 2022. "Slowing Women’s Labor Force Participation: The Role of Income Inequality," Working Papers 2022-037, Human Capital and Economic Opportunity Working Group.
    19. Günseli Berik & Ebru Kongar, 2011. "Time Use of Mothers and Fathers in Hard Times and Better Times: the U.S. Business Cycle of 2003-2010," Working Paper Series, Department of Economics, University of Utah 2011_16, University of Utah, Department of Economics.
    20. Inés Hardoy & Pål Schøne, 2014. "Displacement and household adaptation: insured by the spouse or the state?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 683-703, July.
    21. Martinoty, Laurine, 2022. "Partner’s income shock and female labor supply. Evidence from the repeal of Argentina’s convertibility law," World Development, Elsevier, vol. 159(C).
    22. Maggie R. Jones, 2014. "The EITC over the business cycle: Who benefits?," CARRA Working Papers 2014-15, Center for Economic Studies, U.S. Census Bureau.
    23. Lee, Siha, 2020. "Household responses to disability shocks: Spousal labor supply, caregiving, and disability insurance," CLEF Working Paper Series 21, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    24. Sabarwal, Shwetlena & Sinha, Nistha & Buvinic, Mayra, 2010. "How do women weather economic shocks ? a review of the evidence," Policy Research Working Paper Series 5496, The World Bank.

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    Keywords

    Marriage; Labor market; Women - Employment; Employment;
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