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The added worker effect in South Africa

The theory that married women’s labour supply increases in response to their partners job loss is known as the added worker effect (addWE). This paper investigates how married women’s labour force participation, probability of employment and average working hours respond to the recently unanticipate...

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Main Author: Hoffman, Morne
Other Authors: Ranchhod, Vimal
Format: Thesis
Language:English
Published: School of Economics 2020
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access_status_str Open Access
author Hoffman, Morne
author2 Ranchhod, Vimal
author_browse Hoffman, Morne
Ranchhod, Vimal
author_facet Ranchhod, Vimal
Hoffman, Morne
author_sort Hoffman, Morne
collection Thesis
description The theory that married women’s labour supply increases in response to their partners job loss is known as the added worker effect (addWE). This paper investigates how married women’s labour force participation, probability of employment and average working hours respond to the recently unanticipated job loss of their partners in South Africa. It also considers the effect of partners job loss on married women’s preference to work and the probability that they work more hours from the previous period. The paper finds that the probability of married women’s participation, employment and average working hours rises (a positive effect) in response to their partners unanticipated job loss. However, these results are all statistically insignificant and its inconclusive evidence can be attributed primarily to limitations in the data. Alternatively, the labour supply responses are modelled to the static unemployment status of partners as a sensitivity check and find the probability of labour force participation of married women falls if their partners are unemployed. Albeit statistically significant, it is argued that this result is predominately due to the idea that people tend to get married to other people of similar socio-economic, religious and ethnic backgrounds (known as assortative mating) which masks the addWE. This approach is thus shown to be inappropriate for the analysis of the addWE.
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publishDate 2020
publishDateRange 2020
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publisher School of Economics
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source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/31253 The added worker effect in South Africa Hoffman, Morne Ranchhod, Vimal economics The theory that married women’s labour supply increases in response to their partners job loss is known as the added worker effect (addWE). This paper investigates how married women’s labour force participation, probability of employment and average working hours respond to the recently unanticipated job loss of their partners in South Africa. It also considers the effect of partners job loss on married women’s preference to work and the probability that they work more hours from the previous period. The paper finds that the probability of married women’s participation, employment and average working hours rises (a positive effect) in response to their partners unanticipated job loss. However, these results are all statistically insignificant and its inconclusive evidence can be attributed primarily to limitations in the data. Alternatively, the labour supply responses are modelled to the static unemployment status of partners as a sensitivity check and find the probability of labour force participation of married women falls if their partners are unemployed. Albeit statistically significant, it is argued that this result is predominately due to the idea that people tend to get married to other people of similar socio-economic, religious and ethnic backgrounds (known as assortative mating) which masks the addWE. This approach is thus shown to be inappropriate for the analysis of the addWE. 2020-02-24T09:44:04Z 2020-02-24T09:44:04Z 2019 2020-02-24T09:41:54Z Master Thesis Masters MCom http://hdl.handle.net/11427/31253 eng application/pdf School of Economics Faculty of Commerce
spellingShingle economics
Hoffman, Morne
The added worker effect in South Africa
thesis_degree_str Master's
title The added worker effect in South Africa
title_full The added worker effect in South Africa
title_fullStr The added worker effect in South Africa
title_full_unstemmed The added worker effect in South Africa
title_short The added worker effect in South Africa
title_sort added worker effect in south africa
topic economics
url http://hdl.handle.net/11427/31253
work_keys_str_mv AT hoffmanmorne theaddedworkereffectinsouthafrica
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