Job loss and household labor supply adjustments in developing countries: Evidence from Argentina

Ciaschi, Matias ; Neidhöfer, Guido

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URN: urn:nbn:de:bsz:180-madoc-634775
Document Type: Working paper
Year of publication: 2022
The title of a journal, publication series: ZEW Discussion Papers
Volume: 22-041
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J16 , J21 , J22 , J65,
Keywords (English): job loss , labor supply , female labor participation , educational enrollment , educational drop-out , human capital formation , idiosyncratic shocks
Abstract: Using longitudinal data for Argentina, we estimate the labor supply reaction of spouses and children to their husband's or father's job loss. Our findings show that job loss by the household head has a positive and significant impact on the labor supply of other household members. However, it increases the likelihood of spouses to switch to informal and downgraded employment, and of children to drop-out from education. While effects are stronger among vulnerable households, coverage of social security does not provide enough support in coping with unemployment shocks. Instead, we find that mothers' labor participation may prevent the educational drop-out of their daughters

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