In this article, we study the relationship between female and male labour market participation within Italian households, focusing on the reaction of women to the transitions from employment to unemployment of their partner—the so-called added worker effect (AWE). The analysis was carried out over a long period of time—2004–2019—on data from the longitudinal Italian Labour Force Survey (ILFS). To identify the AWE, we adopted a difference-in-differences methodology, which allowed us to identify the contribution of male unemployment to female labour force participation and labour supply. By exploiting the richness of information contained in the ILFS, we were also able to assess the AWE in response to periods of male unemployment risk and reduced work activity.
The added worker effect within Italian households: the role of employment uncertainty and underemployment
Donata Favaro
;Anna Giraldo
2023
Abstract
In this article, we study the relationship between female and male labour market participation within Italian households, focusing on the reaction of women to the transitions from employment to unemployment of their partner—the so-called added worker effect (AWE). The analysis was carried out over a long period of time—2004–2019—on data from the longitudinal Italian Labour Force Survey (ILFS). To identify the AWE, we adopted a difference-in-differences methodology, which allowed us to identify the contribution of male unemployment to female labour force participation and labour supply. By exploiting the richness of information contained in the ILFS, we were also able to assess the AWE in response to periods of male unemployment risk and reduced work activity.
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