Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/207111
Authors: 
Halla, Martin
Schmieder, Julia
Weber, Andrea
Year of Publication: 
2018
Series/Report no.: 
Working Paper No. 1816
Abstract: 
We study the effectiveness of intra-household insurance among married couples when the husband loses his job due to a mass layoff or plant closure. Empirical results based on Austrian administrative data show that husbands suffer persistent employment and earnings losses, while wives' labor supply increases moderately due to extensive margin responses. Wives' earnings gains recover only a tiny fraction of the household income loss and, in the short-term, public transfers and taxes are a more important form of insurance. We show that the presence of children in the household is a crucial determinant of the wives' labor supply response.
Subjects: 
Firm Events
Household Labor Supply
Intra-household Insurance
Added Worker Effect
JEL: 
D19
J22
J65
Document Type: 
Working Paper

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