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 language | English |
|---|---|
| Pages (from-to) | 217-243 |
| Number of pages | 27 |
| Journal | Review of Economics of the Household |
| Volume | 21 |
| Issue number | 1 |
| Early online date | 3 Jan 2022 |
| DOIs | |
| Publication status | Published - Mar 2023 |
Bibliographical note
Publisher Copyright:© 2021, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature.
Funding
We are grateful for comments and suggestions by the editor Sonia Oreffice, the editor-in-chief Shoshana Grossbard, two anonymous referees, Wolter Hassink and seminar and conference participants at CPB Netherlands Bureau for Economic Policy Analysis, the IIPF 2018 conference in Tampere and the EALE 2019 conference in Uppsala. The remaining errors are our own.
Keywords
- Added-worker effect
- C21
- Differences-in-differences
- Great Recession
- H31
- J21
