Type | Working Paper |
Title | How Do Married Women Respond When Their Husbands Lose Their Jobs? Evidence from Turkey During the Recent Crisis |
Author(s) | |
Publication (Day/Month/Year) | 2014 |
URL | http://scuoledidottorato.unicatt.it/defap/defap-AyhanSH_paper.pdf |
Abstract | This paper contributes to the analysis of the labor supply response of married women to their husbands’ job losses (added worker effect). It empirically tests the hypothesis of added worker effect relying on a case study on Turkey during the global economic crisis of 2008. Identification is achieved by exploiting the exogenous variation in the output of male-dominated sectors hard-hit by the crisis and the gender-segmentation that characterizes the Turkish labor market. Findings based on the instrumental variable approach suggest that the added worker effect explains up to 64% of the observed increase in female labor force participation in Turkey. The size of the effect depends on how long it takes for wives to adjust their labor supply to their husbands’ job losses. |