The Response of Wives f Labor Supply to Husbands f Job Loss

Miki Kohara

No 08E007, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper examines how Japanese wives react to their husbands f involuntary job loss, and tests the existence of complementarity of a wife fs labor supply to her husband fs. Utilizing panel data on Japanese households from 1993 to 2004, we found that wives f labor supply is stimulated when husbands suffer involuntary job loss. The detailed statistics show that not only do working wives raise their labor hours but also nonworking wives begin to participate in the labor market. The added worker effect is evident during the period of job insecurity in Japan following the mid-1990s.

Keywords: Added worker effects; Female labor supply; Within-family risk-sharing; Household panel data; Japan (search for similar items in EconPapers)
JEL-codes: C23 D12 J22 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2008-04
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (2)

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