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Added worker effects in Canada, 1980-2019

Fri., Mar. 4, 2022 2:30 p.m.

Location: Zoom

In this study we examine the extent to which men and women change their labour supply in response to a spouse’s loss of employment. Using a sample of married men and women aged 25-59 who can be observed over several months in Labour Force Survey, we find women are significantly more likely to enter the labour force shortly after a spouse leaves employment, however these added worker effects dissipate within 3 months. The estimated short-term effect grew substantially between the 1980s and the 2010s. There are also sizeable short-term added worker effects found for men. Added worker effects appear largest for women with post-secondary education and smallest for women with young children.

 

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