Intra-household labour supply after an unemployment event : the added worker effect

Borradores de Economia
Number: 
944
Published: 
Classification JEL: 
J20, J22, J38
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy
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In this paper we explore one of the oldest labour market phenomena documented in the literature: the added worker effect, which refers to the labour supply response of secondary workers to main earners' job losses. To do so we take advantage of the panel