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The rise of the added worker effect

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Mankart, Jochen [Deutsche Bundesbank] Oikonomou, Rigas [UCL]

We document that the added worker effect (AWE) has increased over the last three decades. We develop a search model with two earner households and we illustrate that the increase in the AWE from the 1980s to the 2000s can be explained through (i) the narrowing of the gender pay gap, (ii) changes in the frictions in the labor market and (iii) changes in the labor force participation costs of married women.

Document type Article de périodique (Journal article) – Article de recherche
Access type Accès restreint
Publication date 2016
Language Anglais
Journal information "Economics Letters" - Vol. 143, p. 48-51 (June 2016)
Peer reviewed yes
Publisher Elsevier BV ((Netherlands) Amsterdam)
issn 0165-1765
e-issn 1873-7374
Publication status Publié
Affiliation UCL - SSH/LIDAM/IRES - Institut de recherches économiques et sociales
Keywords Labor market search ; Heterogeneous agents ; Family self insurance ; Dual earner ; Unemployment
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Bibliographic reference Mankart, Jochen ; Oikonomou, Rigas. The rise of the added worker effect. In: Economics Letters, Vol. 143, p. 48-51 (June 2016)
Permanent URL http://hdl.handle.net/2078.1/174358