Couples' labour supply responses to job loss: growth and recession compared
We examine whether couples in the UK increase labour supply to cushion the fall in earnings from a job loss, comparing periods of growth and recession. We consider both male and female earners and various dimensions of labour supply adjustment. We find evidence of labour supply reactions, but they can be negative as well as positive, particularly at the extensive margin. During the recession, household reactions are either unchanged or couples increase their labour market attachment, with bigger positive reactions and smaller negative ones. People do not react in advance of job losses, suggesting that unemployment is a surprise.
The Manchester School
Online Early; Open Access; © 2017 The Authors. The Manchester School published by The University of Manchester and John Wiley & Sons Ltd.; This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.