Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110145
Authors: 
Ayhan, Sinem H.
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 8937
Abstract: 
This paper contributes to the research on interdependencies in spousal labor supply by analyzing labor supply response of married women to their husbands' job losses ("added worker effect"). It empirically tests the hypothesis of added worker effect relying on a case study on Turkey during the global economic crisis of 2008. Identification is achieved by exploiting the exogenous variation in the output of male-dominated sectors that were hit hard by the crisis and the high degree of gender segmentation that characterizes the Turkish labor market. Findings based on the instrumental variable approach suggest that the probability of entering the labor force for a woman increases by up to 29% in response to her husband's unemployment. However the effect is not contemporaneous; it appears with a quarter of lag and remains existent only for two quarters.
Subjects: 
spousal labor supply
added worker effect
discouraged worker effect
global economic crisis
JEL: 
C26
D10
J16
J22
Document Type: 
Working Paper

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