How important is intra-household risk sharing for savings and labor supply?

e-Archivo Repository

Show simple item record Ortigueira, Salvador Siassi, Nawid
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía 2011-10-24T14:24:28Z 2011-10-24T14:24:28Z 2011-09-23
dc.identifier.issn 2340-5031
dc.description.abstract While it is recognized that the family is primarily an institution for risk sharing, little is known about the quantitative effects of this informal source of insurance on savings and labor supply. In this paper, we present a model where workers (females and males) are subject to idiosyncratic employment risk and where capital markets are incomplete. A household is formed by a female and a male, who make collective decisions on consumption, savings and labor supplies. We find that intra-household risk sharing has its largest impact among wealthpoor households. While the wealth-rich use mainly savings to smooth consumption across unemployment spells, wealth-poor households rely on spousal labor supply. For instance, for low-wealth households, average hours worked by wives of unemployed husbands are 8% higher than those worked by wives of employed husbands. This response in wives’ hours makes up 9% of lost family income. We also study the crowding out effects of public unemployment insurance on other sources of private insurance, and consumption losses upon an unemployment spell
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 11-32
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.subject.other Intra-household risk sharing
dc.subject.other Collective household model
dc.subject.other Idiosyncratic unemployment risk
dc.subject.other Incomplete markets
dc.subject.other Precautionary motive
dc.title How important is intra-household risk sharing for savings and labor supply?
dc.type workingPaper
dc.subject.jel D13
dc.subject.jel D91
dc.subject.jel E21
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.type.version submitedVersion
dc.identifier.uxxi DT/0000000910
dc.identifier.repec we1132
 Find Full text

Files in this item

*Click on file's image for preview. (Embargoed files's preview is not supported)

The following license files are associated with this item:

This item appears in the following Collection(s)

Show simple item record