Abstract

This study combines the literature on home production and on the added worker effect as households’ self-insurance mechanisms against unemployment. Exploiting Dutch panel data with detailed information on time use categories and subjective job loss expectations, we estimate the causal effect of an unforeseen job loss on spouses’ time use decisions regarding paid work and home production. In the analysis we explicitly differentiate between males and females who experience sudden unemployment. We find no effect on the intensive or extensive margins of spousal labor supply or on spousal time in home production.

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