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From Trend to Cycle: the Changing Careers of Married Women and Business Cycle Risk

Author

Listed:
  • Kathrin Ellieroth

    (Indiana University Bloomington)

  • Amanda Michaud

    (University of Western Ontario)

Abstract

The rise in hours and employment of married women has been driven by a rise of ``career women'' with highly persistent full-time participation. We derive implications of this secular change for the cyclically aggregate labor using a unified theory where increases in the returns to tenure and decreasing child care costs change women's choice of career paths. We find that, while the cyclicality of hours varies greatly across career types, the changing composition of careers and families nets little change in the cyclicality of aggregate hours, but redistributes the cyclical risk across household types. We explore implications for households' welfare, risk sharing, and savings, by cohort and for each recessionary episode over the computed transition from 1975-2015.

Suggested Citation

  • Kathrin Ellieroth & Amanda Michaud, 2019. "From Trend to Cycle: the Changing Careers of Married Women and Business Cycle Risk," 2019 Meeting Papers 617, Society for Economic Dynamics.
    • Handle: RePEc:red:sed019:617
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