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Job loss and household labor supply adjustments in developing countries: Evidence from Argentina

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  • Matías Ciaschi

    (CEDLAS-IIE-FCE-UNLP)

Abstract

Using longitudinal data for Argentina, this paper measures the labor supply reaction of different household members to a breadwinner’s job loss. Firm events and local unemployment shocks are exploited as exogenous sources of variation to estimate the causal effect. Our main findings show that job loss by the male household head has a significant and substantial effect on the labor supply response of other household members, both at the extensive and intensive margin. While we do not find any effect on daughters, female partners and sons increase their labor market participation. The latter are also more likely to drop out from the educational system. These results are stronger among economically vulnerable households

Suggested Citation

  • Matías Ciaschi, 2020. "Job loss and household labor supply adjustments in developing countries: Evidence from Argentina," CEDLAS, Working Papers 0271, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0271
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    2. César, Andrés & Falcone, Guillermo & Gasparini, Leonardo, 2021. "Costs and benefits of trade shocks: Evidence from Chilean local labor markets," Labour Economics, Elsevier, vol. 73(C).

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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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