Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58463 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 6506
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper examines labour supply adjustment - both hours worked and participation decisions. We focus on the response of each to financial shocks, employing data from the BHPS. Estimated responses are broadly consistent with models of self-insurance that incorporate labour supply flexibility. The shock reflects several factors including financial wealth and a partner's employment situation. The response is significantly larger for those who change job, consistent with the importance of hours constraints within jobs. The propensity to participate in the labour market also appears to respond to the financial shock but that is somewhat less robust than the hours response.
Subjects: 
labour supply
self-insurance
JEL: 
J22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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