• Recent Bard economics alums (Juan Bages, Stergios Mentesidis, Ahnaf Khan and Nicolai Eddy) sharing their experiences with current students at a career advising panel organized by alumni and the Career Development Office at Morningstar, World Trade Center, NYC  Sept 2017
  • Simon Simoski '17 presenting his research on household-debt driven growth.  In the fall, he will join the Masters program at the Levy Institute at Bard.
  • Professors Mike Martell, Ani Mitra and Sanjay DeSilva at the annual picnic - May 2017
  • Prof. Pavlina Tcherneva with students at the annual program picnic - May 2017
  • Prof. Olivier Giovannoni, Nathan Reece and Arielle Weiner-Bronner discussing their research poster at the Bard Summer Research Institute 2014.
  • Eva-Marie Quinones '17 (joint economics and global and international studies major) presenting her research on economic factors that enabled the spread of far-right political parties in Western Europe. She will proceed to the Ph.D. program in political science at Yale this fall.
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Program Events

 

Upcoming Events


The Hyman P. Minsky Summer Seminar

Sunday, June 17 – Saturday, June 23, 2018

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Archive of Past Events

                                        

2018

Tuesday, April 17, 2018 – Wednesday, April 18, 2018

27th Annual Hyman P. Minsky Conference

Financial Stability in a World of Rising Rates and the Repeal of Dodd-Frank Blithewood, Levy Institute 

Friday, April 6, 2018

Capitalist Pasts, Post-Capitalist Futures 

Inaugural Conference, History of Capitalism at Bard  Speakers include:
Kevin Duong (Bard)
David Kettler (Bard)
Zak Rawle (Bard)
Jane Glaubman (Cornell)
Joseph Sheehan (Bard)
Simon deBevoise (Bard)
Zeke Perkins (SEIU)
Ed Quish (Cornell)
Maggie Dickinson (CUNY)
Joy Al-Nemri (Bard)
Ella McLeod (Bard)
Laura Ford (Bard)
Holger Droessler (Bard)
  Reem-Kayden Center Laszlo Z. Bito '60 Auditorium 

Thursday, March 1, 2018

Job Displacement, Family Dynamics, and Spousal Labor Supply

Andrea Weber
CEU-Bard Advanced Certificate Program in Inequality Analysis
We study interdependencies in spousal labor supply and provide new empirical evidence on the added worker effect, the change in labor supply in response to an income shock to the spouse. Our focus is married couples in which the husband loses his job due to a mass layoff or plant closure, using data from the Austrian Social Security Database. Couples in our sample are relatively young and the shock hits households at crucial stages of family formation. The high volatility in wives' predisplacement labor market careers requires a careful choice of a control group to model the counterfactual outcome at the household level. We examine three quasi-experimental counterfactual scenarios that are potentially affected by different types of selection on unobservables. Our analysis shows that husbands' and wives' labor market responses are remarkably consistent across all three scenarios and leads to four main conclusions. First, while husbands suffer large and persistent employment and earnings losses over the first five years after displacement, wives' labor supply increases only moderately, but persistently. Second, wives respond predominantly at the extensive margin. The implied participation elasticity with respect to the husband's earnings shock is very small, about 0.05 in the full sample and 0.08 in the sample of wives not employed at displacement. Third, in terms of nonlabor market-related outcomes we find a small positive effect on the probability of divorce but no effect of the husband's job displacement on fertility. Fourth, the effect of wives' labor supply responses on household income is negligible compared to the effects of unemployment insurance, which dampens especially the large initial earnings shock from job displacement. A plausible explanation for the very limited spousal labor response is gender identity norms, which prevent mothers of young children to enter the labor force.
Campus Center Yellow Room