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on Labour Economics |
| By: | Diaz, Antonia; Jáñez, Álvaro (Universidad Carlos III de Madrid); Wellschmied, Felix (Universidad Carlos III de Madrid) |
| Abstract: | When mobility between locations is frictional, a person's economic well-being is partially determined by her place of birth. Using a life cycle model of mobility, we find that search frictions are the main impairment to the mobility of young people in Spain, and these frictions are particularly strong in economically distressed locations. As a result, being born in a high-unemployment urban area carries with it a large welfare penalty. Less stable jobs, slower skill accumulation, lower average wages, and fewer possibilities for geographic mobility all contribute to these welfare losses. Paying transfers to people in distressed economic locations decreases these welfare losses without large adverse effects on mobility. In contrast, several policies that encourage people to move to low-unemployment urban areas increase these welfare losses and fail to meaningfully increase mobility towards these more successful locations. |
| Keywords: | mobility, local labor markets, search frictions, life cycle, dynamic spatial models |
| JEL: | E20 E24 E60 J21 J61 J63 J64 J68 R23 R31 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15896&r=lab |
| By: | Jelnov, Pavel (Leibniz University of Hannover) |
| Abstract: | This paper takes advantage of a natural experiment, in which Soviet Jewish immigrants were quasi-randomly allocated of to the U.S. and Israel. I find that young women who immigrated as children follow similar fertility profiles in the two host countries. In Israel, they are also similar to native-born women by exercising almost no selection into motherhood and postnatal labor force participation. By contrast, and away from native-born American women, immigrants to the U.S. either combine family and career or become low-educated non-working mothers. This non-trivial segregation arises from a combination of the American Dream with origin-determined fertility norms. |
| Keywords: | immigration, Soviet Jews, female labor force participation, immigrant fertility |
| JEL: | J13 J61 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15847&r=lab |
| By: | Karademir, Sencer (University of Calgary); Laliberté, Jean-William (University of Calgary); Staubli, Stefan (University of Calgary) |
| Abstract: | The disproportionate impact of children on women's earnings constitutes the primary factor contributing to persistent gender inequality in many countries. This paper examines the multigenerational impact of children and whether the public provision of formal childcare lessens the earnings and employment impacts of children. Our analyses notably incorporate the role of grandparents as informal providers of childcare. We find that the arrival of a firstborn reduces the employment and earnings of mothers and grandmothers, suggesting that the life-cycle impact of children on women is larger than previously thought. Studying the implementation of a universal childcare program in the province of Quebec, we find that formal childcare increases the employment rates of mothers, as well as that of grandmothers to a lesser extent. Examining heterogeneity of the program's impact across census divisions, we find a negative correlation between the magnitude of the positive effects on mothers' employment and the pre-policy supply of informal childcare by grandmothers. Our findings together indicate that (1) analyses of social policies should consider broader family units and (2) the impact of childcare policies on mothers depends on pre-existing care arrangements, particularly the amount of care provided by grandparents. |
| Keywords: | childcare policies, labour supply, grandparents, parents, event study, policy reform |
| JEL: | H31 H42 J08 J13 J16 J18 J22 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15894&r=lab |
| By: | Ziegler, Lennart (University of Vienna); Bamieh, Omar (University of Vienna) |
| Abstract: | Despite changing gender norms, few fathers decide to take parental leave after the birth of a child, and when they do, their leave spells are substantially shorter compared to mothers. This study examines how paternal leave-taking is affected by two key features of leave policies: flexibility in leave duration and financial incentives. To disentangle their impact, we exploit recent changes to the Austrian parental leave system, which initially offered flat monthly benefits for 36 months after childbirth. The first reform added considerably shorter leave options; the second reform introduced income-dependent benefits, increasing net income replacement rates to 80 percent. Using a regression discontinuity design based on eligibility cutoff dates, we find that both reforms had a strong impact on leave take-up of fathers. The availability of shorter leave options increased leave-taking by 23 percent, while the introduction of income-dependent benefits raised take-up by another 13 percent relative to pre-reform means. Despite these increases, the share of leave taken by fathers relative to mothers remained similar. Comparing the impact of the two reforms across different income groups, we conclude that higher flexibility is more effective than stronger financial compensation in raising the number of leave-taking fathers. |
| Keywords: | parental leave, gender differences, childcare, financial incentives, labor supply, return to work |
| JEL: | J12 J13 J18 J22 I38 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15890&r=lab |
| By: | Ahrens, Achim (Economic and Social Research Institute, Dublin); Beerli, Andreas (ETH Zurich); Hangartner, Dominik (Stanford University); Kurer, Selina (ETH Zurich); Siegenthaler, Michael (ETH Zurich) |
| Abstract: | Refugees, and immigrants more generally, often do not have access to all jobs in the labor market. We argue that restrictions on employment opportunities help explain why immigrants have lower employment and wages than native citizens. To test this hypothesis, we leverage refugees' exogenous geographic assignment in Switzerland, within-canton variation in labor market restrictions, and linked register data 1999–2016. We document large negative employment and earnings effects of banning refugees from working in the first months after arrival, from working in certain sectors and regions, and from prioritizing residents over refugees. Consistent with an effect of outside options on wages, removing 10% of jobs reduces refugees' hourly wages by 2.8% and increases the wage gap to similar host-country citizens in similar jobs by 2.2%. Furthermore, we show that restrictions reduce refugees' earnings even after they cease applying. Restrictions do not spur refugee emigration nor improve earnings of non-refugee immigrants. |
| Keywords: | labor market integration, migration, labor market policies, labor market institutions, monopsony, refugees, employment, wages, outside options, employment opportunities |
| JEL: | J08 J31 J42 J61 J68 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15901&r=lab |
| By: | Akira Sasahara (Faculty of Economics, Keio University); Yumin Sui (Faculty of Economics, Keio University (Student)); Emily Taguchi (Department of Economics, University of Cologne (Student)) |
| Abstract: | This paper investigates the effects of globalization?measured by an increase in immigration and in imports from China?on labor market outcomes in Japan. We attempt to identify the causal links using a shift-share instrument based on previous settlement patterns of migrants for immigration shocks, and the one based on previous spatial allocation of sectoral employment for import shocks. The results suggest limited impact of these variables on wages, however, significant effects are found in the late 1990s, suggesting their interactions with Japan fs Lost Decade. |
| Keywords: | immigration, China trade shock, wages, Japan |
| JEL: | F16 F22 F66 |
| Date: | 2023–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2023-002&r=lab |
| By: | Michael Smart; Matthew Kronberg; Josip Lesica; Danny Leung; Huju Liu |
| Abstract: | We estimate the causal effects of a pandemic-era wage subsidy program in Canada on job losses and business closures. Our estimates use administrative microdata and a regression discontinuity strategy to estimate the effects of marginal changes in the wage subsidy rate. The estimated net wage elasticity of employment was 0.11, implying a small aggregate employment effect of the program and an estimated fiscal cost per job saved of nearly $200, 000 per year. Subsidy payments caused a small but persistent reduction in business closure rates during subsequent waves of the pandemic, and increased earnings of existing employees. In all, our results suggest the subsidies did little to preserve job matches, but played a greater role in the overall social insurance response to the pandemic. |
| Keywords: | Canada emergency wage subsidy, Covid-19, incrementality |
| JEL: | H25 E32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10218&r=lab |
| By: | Mareen Bastiaans (Erasmus University Rotterdam); Robert Dur (Erasmus University Rotterdam); Anne C. Gielen (Erasmus University Rotterdam) |
| Abstract: | In many Western countries, a sizeable group of people live on welfare benefits for a long time. Many of them suffer from mental health issues. This paper studies the labor market and mental health effects of an activation program targeting these long-term inactive people. We exploit the staggered implementation of the program in a difference-in-differences design. We find that the activation program hardly affects labor market outcomes. However, for those on mental health medication prior to the start of the program, the use of mental health medication substantially drops in the years following the start of the program. This effect is particularly pronounced for men. We also study spillover effects on the children of those targeted by the program, finding some suggestive evidence for improved learning and mental health outcomes. |
| Keywords: | Activation program, long-term inactive, welfare beneficiaries, mental health, intergenerational spillovers |
| JEL: | H53 I19 I38 J68 |
| Date: | 2023–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230003&r=lab |
| By: | Portes, Jonathan (King's College London); Springford, John (Centre for European Reform) |
| Abstract: | The end of free movement and the introduction of the post-Brexit migration system represents a major structural change to the UK labour market. We provide a descriptive assessment of the impact on a sectoral basis. We examine how overall labour force growth has differed between sectors, both overall and in terms of the extent to which this growth was driven by migrant workers, both from the EU and from outside the EU, prior to the pandemic. This allows us to construct counterfactuals, which we contrast with observed outturns, as well as with data on visas issued by sector under the new system. Our analysis suggests that, although migration overall is currently running at least at pre-pandemic levels, the post-Brexit migration system has produced, as designed, a clear break with pre-Brexit trends, reducing labour supply for some sectors. There remains a substantial "shortfall" in migration for work, even taking of the impact of the pandemic. However, these impacts differ very considerably between sectors. In lower-skilled sectors, work-related migration under free movement does not appear to have been replaced by additional visa issuance under the new system. Meanwhile, in higher skilled sectors, increased visa issuance has increased, and does appear to be consistent with levels of migration that are broadly in line with pre-pandemic, pre-Brexit trends. |
| Keywords: | migration, labour markets, Brexit |
| JEL: | F22 J48 J61 J68 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15883&r=lab |
| By: | Davide Cipullo |
| Abstract: | This paper investigates how direct election regimes (à la presidential democracy) affect the selection of women into political offices compared to indirect appointment (à la parliamentary). Exploiting the staggered phase-in across Italian municipalities of a reform to the local institutional regime, I find that the introduction of direct elections increased the fraction of female mayors substantially. The results are stronger in cities with a high pre-reform share of female politicians and driven by high-quality female officials replacing undereducated incumbents. Taken together, the results of this paper inform that direct election regimes ease the selection of competent politicians into office. |
| Keywords: | political selection, voting systems, gender gaps, female representation |
| JEL: | C24 D02 D72 J16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10229&r=lab |
| By: | Carolina Lennon (Department of Economics, Vienna University of Economics and Business); Alyssa Schneebaum (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | Global firms have a higher share of female employees than domestic non-exporters. To explain this fact, this paper tests whether international trade and FDI are channels through which norms regarding gender (in)equality are transmitted from customers and investors to firms. We employ pooled cross-sectional data from 2007 - 2016 for around 28, 000 firms in 104 different countries. We compare global versus non-global firms in the same market to study the infuence of firms' exposure to gender norms in commercial partner countries. The results show a race to the top for low- and mid-level jobs and the opposite for top managerial positions. |
| Keywords: | globalization, international trade, FDI, gender, transmission of social norms |
| JEL: | F66 D22 F42 J16 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp331&r=lab |
| By: | Takeda, Kohei |
| Abstract: | The interplay between structural transformation in the aggregate and local economies is key to understanding spatial inequality and worker mobility. This paper develops a dynamic overlapping generations model of economic geography where historical exposure to different industries creates persistence in occupational structure, and non-homothetic preferences and differential productivity growth lead to different rates of structural transformation. Despite the heterogeneity across locations, sectors, and time, the model remains tractable and is calibrated with the U.S. economy from 1980 to 2010. The calibration allows us to back out measures of upward mobility and inequality, thereby providing theoretical underpinnings to the Gatsby Curve. The counterfactual analysis shows that structural transformation has substantial effects on mobility: if there were no productivity growth in the manufacturing sector, income mobility would be about 6 percent higher, and if amenities were equalized across locations, it would rise by around 10 percent. In these effects, we find that different degrees of historical exposure to industries in local economies play an important role. |
| Keywords: | structural transformation; upward mobility; labor mobility; economic geography |
| JEL: | O14 J62 R11 R13 |
| Date: | 2022–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118050&r=lab |
| By: | Miroslav Gabrovski (University of Hawaii); Mario Rafael Silva (Hong Kong Baptist University) |
| Abstract: | The Diamond-Mortensen-Pissarides model implies a nearly perfect correlation between labor productivity and unemployment/vacancies, yet the relationship in the data is mild. We show that incorporating sunk entry costs and vacancy creation in an otherwise standard setup can reconcile the discrepancy. Sunk costs cause vacancies to be a positively valued, predetermined variable. If the destruction shock is infrequent, then most vacancies were created in the past, and hence the number of vacancies in the market correlate more closely with past than current labor productivity. Provided the destruction shock is calibrated to match either micro-level evidence on product destruction and firm exit rates or commonly used values in the growth literature, the model reproduces the empirically observed mild correlation between productivity and unemployment without breaking the strong negative co-movement between unemployment and vacancies. |
| Keywords: | job destruction, entry costs, unemployment, aggregate fluctuations |
| JEL: | E24 E32 J63 J64 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:202301&r=lab |
| By: | Cardullo, Gabriele (University of Genova); Conti, Maurizio (University of Genova); Ricci, Andrea (INAPP – Institute for Public Policy Analysis); Scicchitano, Sergio (INAPP – Institute for Public Policy Analysis); Sulis, Giovanni (University of Cagliari) |
| Abstract: | We explore the long run determinants of current differences in the degree of cooperative labor relations at local level. We do this by estimating the causal effect of the medieval communes - that were established in certain cities in Centre-Northern Italy towards the end of the 11th century - and that contributed to the emergence of a cooperative attitude in the population on various proxies for current cooperative labor relations. Conditional on a large set of firm and municipality level controls, as well as a full set of province fixed effects, we find that firms located in municipalities that had been a free medieval commune in the past, have higher current probabilities to adopt two-tier bargaining structures and to be unionized. We also report IV and propensity score estimates that confirm our main results. |
| Keywords: | industrial relations, two-tier bargaining, unions, cooperation, persistence |
| JEL: | J50 J53 J59 N00 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15898&r=lab |
| By: | Nina Drange; Astrid Marie Jorde Sandsør |
| Abstract: | Studies have shown that a lack of adult supervision of school-aged children is associated with antisocial behavior and poor school performance. To mitigate this, one policy response is to provide structured, adult-supervised programs offered after school throughout the academic year. After-school programs in Norway are an integrated part of school, used to extend the school day to a full working day by providing care before and after school. Participation is voluntary and is subject to fees paid by parents. In the past decade, the quality and content of these programs and the role they can play in integrating children have been under scrutiny. In 2016/17, the city of Oslo gradually introduced and expanded an offer of free part time participation in its after-school program, starting with city districts with a high share of children with an immigrant background. We utilize the staggered roll out of this free after-school program to investigate enrollment, learning outcomes and student wellbeing. The take-up was substantial, raising enrollment rates rates from about 70 to 95% in the first wave of affected schools. However, our difference-in-differences estimates show little overall effect of the program on academic performance, neither on average nor across subgroups. There is also little evidence that the program enhanced student well-being or decreased bullying and we find no evidence of increased maternal labor supply. |
| Keywords: | after-school program, after-school care, difference-in-differences |
| JEL: | I21 I24 J13 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10215&r=lab |
| By: | Ufuk Akcigit; Harun Alp; André Diegmann; Nicolas Serrano-Velarde |
| Abstract: | We study the implications of employment targets on firm dynamics during the privatization of the East German economy. Exploiting novel contract-level data, we document three stylized facts. First, the policy distorted firm size choices and generated bunching of firms around their committed employment target. Second, exploiting heterogeneous labor preferences of privatizers, we how that assigning tight commitments to firms causes an increase in employment growth and leads to higher productivity growth. Finally, tighter commitments also result in significant costs by leading to increased firm exit. We interpret these results through the lens of a dynamic model with endogenous productivity growth at the firm level. The model highlights that while tight commitments distort the employment decision statically and lead to a higher exit probability, they also induce a “catch-up” increase in productivity growth. This is because although firm profits are lower under tight commitments, marginal profits with respect to productivity are higher. We calibrate the model to our data and find that the policy lead to a 3 percentage points higher aggregate TFP growth thanks to the productivity improvements of firms with tight contracts. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:685&r=lab |
| By: | Winfree, Paul |
| Abstract: | New hand-collected school administrative data from 1870s Virginia, alongside linked individual US Censusrecords, reveals that temporary school closures had lasting effects on literacy and income in adulthood. Those affected by the closures had lower intergenerational economic mobility, particularly those from low-income backgrounds. The age at which the closures occurred also played a role with younger cohorts more affected by early developmental disruptions and older cohorts more affected by prolonged closures. |
| Keywords: | returns to education, school closures, literacy, economic mobility, wage inequality |
| JEL: | H75 I21 I24 J62 N31 N91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qucehw:202302&r=lab |
| By: | Bansak, Cynthia; Dziadula, Eva; Zavodny, Madeline |
| Abstract: | This study examines the impact of having a clear path to lawful permanent resident status, or a "green card, " and naturalized citizenship on marital status and spousal characteristics among Chinese immigrants in the United States. A series of U.S. policy changes in the early 1990s made all mainland Chinese immigrants already present in the country eligible for a green card. We examine the effect of those policy changes on Chinese immigrants' marriage market outcomes relative to other East Asian immigrants. Using 1990 and 2000 U.S. Census data, we find that the share of Chinese immigrants who are married increased after they became automatically eligible for a green card. In particular, highly educated Chinese immigrants became relatively more likely to be married with a spouse living with them and relatively less likely to be married with a spouse living elsewhere. This pattern suggests that some Chinese spouses immigrated after their husband or wife received legal status, or spousal chain migration occurred. We also find that highly educated Chinese immigrants benefited in the marriage market in terms of spousal education and earnings, but less-educated Chinese immigrants did not. Meanwhile, less-educated Chinese-born women became relatively more likely to marry a U.S. native. |
| Keywords: | immigration, marriage markets, assortative matching, legal status, China |
| JEL: | J12 J15 K37 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1233&r=lab |
| By: | Phitawat Poonpolkul |
| Abstract: | The integration of age-dependent increasing risk aversion (IRA) into an overlapping generations model (OLG) with risk-sensitive preferences provides a more comprehensive understanding of risk aversion, life-cycle behavior, and welfare under uncertainties. A quantitative analysis shows that IRA individuals accumulate more precautionary savings and adjust working hours to mitigate income shocks. However, this mitigation of uncertainty entails a cost of reduced resources, which could have otherwise been used to increase overall consumption of goods and leisures. Three alternative policies to address the challenges posed by aging are evaluated: increasing a payroll tax rate, reducing pension benefits, and extending the retirement age. The results show that individuals who expect to become more risk averse in old age may prefer the payroll tax rate increase, as the other two options results in relatively higher income uncertainty, which contradicts the results of previous studies that assumed constant risk aversion (CRA). |
| Keywords: | Overlapping generations model; Fiscal sustainability; Demographic changes; Increasing risk aversion; Non-expected utility |
| JEL: | D15 D81 E62 J11 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:198&r=lab |
| By: | Czura, Kristina (University of Groningen); Menzel, Andreas (CERGE-EI, Prague); Miotto, Martina (CERGE-EI, Prague, and CAGE) |
| Abstract: | Menstruation can limit female labor force participation, especially in low-income countries, where menstrual hygiene practices are constrained by lack of finances and information. In a randomized controlled trial with around 1, 900 female workers from four Bangladeshi garment factories, we relax both constraints individually and jointly by providing free sanitary pads and information. Both access to sanitary pads and information improve menstrual practices, either by the adoption of new technologies, or by knowledge gains and improved use of traditional materials, and both interventions improve health outcomes. However, these positive effects do not translate to better labor outcomes, such as earnings and work attendance. |
| Keywords: | Menstrual Health, Health Behavior, Labor Force Participation, Export Manufacturing JEL Classification: O14, O15, O35, M54, J32, J81 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:653&r=lab |
| By: | Panagiotis Nanos (Department of Economics, University of Sheffield, UK) |
| Abstract: | In this paper, I carry out a welfare analysis of the minimum wage in the framework of a Diamond-Mortensen-Pissarides model with stochastic job matching. I explore the role of the minimum wage in a labour market with trading externalities and present the necessary and sufficient condition for a minimum wage hike to be efficiency-enhancing. In this context, I characterise minimum wage spillover effects and demonstrate that there is a direct link between the welfare effects and spillover effects of a minimum wage. This theoretical finding suggests that the welfare impact of minimum wage changes can be inferred from the empirical observation of spillover effects on the wage distribution. |
| Keywords: | minimum wage, wage distribution, social welfare, policy evaluation |
| JEL: | J08 J64 H21 H23 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:shf:wpaper:2023004&r=lab |
| By: | Klara Kantova (Charles University, Prague, Czech Republic) |
| Abstract: | This study investigates the effect of ex-prisoners on the unemployment rate at times of low rate of unemployment as well as examines the effect of the unemployment rate on the recidivism rate in the Czech Republic during the period 1992-2018. The Czech Republic has a significant issue with the extensive scale of its prison population, which places a great burden on the Czech economy. Ex-prisoners also represent a cost for the state as they receive social benefits. Another big concern in the Czech Republic is the recidivism rate which reaches huge values every year, ranging from 57% to 75% in the period 1992-2018. To prevent recidivism, it is important to reintegrate released prisoners back into society. In this study, I use the data provided by the Prison Services Yearbooks as well as the data from the Czech Statistical Office. The results indicate no significant effect of released prisoners on the unemployment rate. Further, the results show that when there is a 1% rise in the unemployment rate, it causes an almost 1.1% rise in the recidivism rate. |
| Keywords: | unemployment rate, ex-prisoners, recidivism rate, Czech Republic, regions |
| JEL: | J7 J21 J65 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2023_02&r=lab |
| By: | Sascha O. Becker (Monash University and University of Warwick); Volker Lindenthal (LMU Munich); Sharun Mukand (University of Warwick); Fabian Waldinger (LMU Munich) |
| Abstract: | We study the role of professional networks in facilitating emigration of Jewish academics dismissed from their positions by the Nazi government. We use individual-level exogenous variation in the timing of dismissals to estimate causal effects. Academics with more ties to early émigrés (emigrated 1933-1934) were more likely to emigrate. Early émigrés functioned as "bridging nodes" that facilitated emigration to their own destination. We also provide evidence of decay in social ties over time and show that professional networks transmit information that is not publicly observable. Finally, we study the relative importance of three types (family, community, professional) of social networks. |
| Keywords: | professional networks; high-skilled emigration; Nazi Germany; Jewish academics; universities; |
| JEL: | I20 I23 I28 J15 J24 N30 N34 N40 N44 |
| Date: | 2023–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:370&r=lab |
| By: | Maja Adena (WZB Berlin); Daniel Hamermesh (University of Texas at Austin); Michal Myck (Centre for Economic Analysis); Monika Oczkowska (Centre for Economic Analysis) |
| Abstract: | Using data from the Survey of Health, Ageing and Retirement in Europe (SHARE, 2004-17) and time diaries from Poland (2013), the U.S. (2006-16), the U.K. (2014-15) and France (2009-10), we examine differences between widowed and partnered older women in well-being and its development in widowhood. Most importantly, our analysis accounts for time use, an aspect which has not been studied previously. We trace the evolution of well-being of women who become widowed by comparing them with their matched non-widowed ‘statistical twins’ and examine the role of an exceptionally broad set of potential moderators of widowhood’s impact on well-being. We confirm a dramatic decrease in mental health and life satisfaction after the loss of partner, followed by a slow partial recovery over a five-year period. An extensive set of controls recorded prior to widowhood, including detailed family ties and social networks, provides little help in explaining the deterioration in well-being. Unique data from time-diaries kept by older women in several European countries and the U.S. tell us why: the key factor behind widows’ reduced well-being is increased time spent alone. |
| Keywords: | widowhood; well-being; social networks; time use; |
| JEL: | I31 I19 J14 |
| Date: | 2023–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:371&r=lab |