The added-worker effect in the Netherlands before and during the Great Recession

Emile Cammeraat*, Egbert Jongen, Pierre Koning

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We study the added-worker effect in the Netherlands with large-scale administrative panel data for the period 1999–2015. Conditioning on samples with similar employment histories, we employ differences-in-differences to estimate the effect of a male partner’s unemployment shock on the female partner’s income. We find a modest added-worker effect of 2–5% of the male partner’s income loss, as compared to the much larger compensating effect from social insurance schemes. The added-worker effect largely disappeared at the beginning of the Great Recession, but resurfaced a few years later. Over the years, profits from self-employment have become more important in dealing with unemployment shocks.

Original languageEnglish
JournalReview of Economics of the Household
DOIs
Publication statusAccepted/In press - 2022

Bibliographical note

Publisher Copyright:
© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.

Keywords

  • Added-worker effect
  • C21
  • Differences-in-differences
  • Great Recession
  • H31
  • J21

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