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The Added Worker Effect
Abstract
The term "added worker effect" usually refers to a temporary increase in the labor supply of married women whose husbands have become unemployed. This paper presents a new approach to the empirical study of the added worker effect, which emphasizes the role of employment uncertainty and credit constraints in generating short-run participation and employment patterns. The estimates are based on employment transition probabilities rather than static measures of labor supply and are used in a dynamic simulation of changes in the employment and participation rates of wives following an exogenous increase in unemployment among their husbands. The results show a small but significant added worker effect, at least for white families, and suggest that the apparent disagreement among previous studies may stem from different approaches to measuring responses to a transitory event such as an unemployment spell.
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Citations
Cited by
Consumption inequality and partial insurance
Blundell, R., Pistaferri, L., & Preston, I. (2004) · Working Paper Series · doi:10.1920/wp.ifs.2004.0428 · Cited by 846
Chapter 2 Female labor supply: A survey
Killingsworth, M. R., & Heckman, J. J. (1986) · Handbook of Labor Economics · doi:10.1016/s1573-4463(86)01005-2 · Cited by 481
Consumption Inequality and Family Labor Supply
Blundell, R., Pistaferri, L., & Saporta-Eksten, I. (2016) · American Economic Review · doi:10.1257/aer.20121549 · Cited by 462
Worker Displacement and the Added Worker Effect
Stephens, Jr. (2002) · Journal of Labor Economics · doi:10.1086/339615 · Cited by 357
Bansak, C., & Starr, M. (2021) · Review of Economics of the Household · doi:10.1007/s11150-020-09540-9 · Cited by 121
Metadata
- Authors
- Lundberg, S.
- Venue
- Journal of Labor Economics
- Publisher
- University of Chicago Press
- Published
- 1985-01
- Volume
- 3
- Issue
- 1, Part 1
- Pages
- 11-37
- ISSN
- 0734-306X (ISSN-L)
- 1537-5307
- OpenAlex
- W2016481775
- Cited by
- 508
- References
- 0
- FWCI
- 8.49
- Type
- journal article
- Language
- en
- Open access
- closed
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- Lundberg, S. (1985). The Added Worker Effect. Journal of Labor Economics. https://doi.org/10.1086/298069
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
