Joint search over the life cycle

• 成果类型: Article
• 署名作者: Bacher, Annika; Gruebener, Philipp; Nord, Lukas
• 署名单位: BI Norwegian Business School; Washington University (WUSTL); University of Pennsylvania
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2024.103696
• 发表日期: 2025
• 关键词: unemployment; search; Added worker effect; life cycle; Family insurance

摘要

This paper provides evidence that the added worker effect - labor force entry upon spousal job loss - is stronger for young than old households. Using a life cycle model of two-member households in a frictional labor market, we study whether this age-dependency is driven by heterogeneous needs for or availability of spousal insurance. Our framework endogenizes asset and human capital accumulation, as well as arrival rates of job offers, and is disciplined against U.S. micro data. Counterfactuals show a strong complementarity across both margins: A large added worker effect requires both high spousal earnings potential relative to the primary earner and limited access to other means of self-insurance. Together, both margins account for the observed age differential in the added worker effect. The model predicts substantial crowding out of spousal labor supply responses by unemployment benefit extensions among young households, in line with their stronger insurance motive.