Female labor supply as insurance against idiosyncratic risk

• 成果类型: Article; Proceedings Paper
• 署名作者: Attanasio, O; Sánchez-Marcos, V; Low, H
• 署名单位: University of London; University College London; Universidad de Cantabria
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1162/jeea.2005.3.2-3.755
• 发表日期: 2005
• 页码: 755-764
• 关键词: consumption

摘要

In this paper, we explore the role of female labor supply as an insurance mechanism against idiosyncratic earnings risk within the family. We use a life-cycle model in which a unitary family makes consumption, saving, and labor supply decisions. Additional uncertainty increases female participation rates. This effect on participation is greatest when the ability to borrow (and hence to smooth consumption) is limited. We calculate the welfare cost of increases in uncertainty and show that the welfare cost is greater when households are unable to adjust female labor supply.