Unemployment and Labor Supply from a Household Perspective
In this project we examine how individuals’ labor market supply and unemployment experience is related to their household status, considering the household’s composition or needs and the earnings (potential) of the household members.
Factsheet
- Schools involved School of Social Work
- Institute(s) Institute for Social Security and Social Policy
- Funding organisation Others
- Duration (planned) 15.11.2024 - 16.06.2025
-
Head of project
Prof. Dr. Debra Hevenstone
Prof. Dr. Dorian Kessler - Project staff Dr. René Rüegg
-
Partner
Staatssekretariat für Wirtschaft SECO
FORS - Keywords Labor supply, Unemployment, Family
Situation
From a labor market policy perspective, there is growing interest in how to better mobilize the workforce. Research shows that women’s labor supply and unemployment experiences are closely linked to household circumstances — such as household composition, needs, and the partners’ absolute, relative, and potential earnings. Evidence also suggests that responsiveness to policy may be higher at particular points in the life course, for example when working hours are reduced after the birth of a first child, or when children grow older and parents consider re-entering the labor market.
Course of action
The report begins with a descriptive analysis of employment, working hours, and unemployment by household type, taking into account household composition (single households, couples with and without children, and the age of children) as well as partner’s income. We then apply event study analysis to estimate how household changes (e.g. marriage, childbirth, youngest child entering school) and changes in a partner’s income affect employment, hours, and earnings. Finally, we analyze unemployment in more detail, focusing on which household types are more likely to experience persistent unemployment, exit from the labor market, or re-employment in lower-paid jobs. Taken together, these analyses will provide insight into which individuals may have the potential to increase their labor supply under favorable conditions.
