Advertisement

The effect of unemployment on social participation of spouses: evidence from plant closures in Germany

  • Lars KunzeEmail author
  • Nicolai Suppa
Article
  • 44 Downloads

Abstract

This paper estimates the effect of an individual’s unemployment on the level of social participation of their spouse. Using German panel data, it is shown that unemployment has a strong negative effect on public social activities of both directly and indirectly affected spouses. Private social activities of either spouse, however, are only found to increase if the indirectly affected spouse is not working. Conflict prevention strategies or habituation may help to rationalise this finding. Our results imply that active labour market policies should account for spillover effects within couples and adopt a family perspective.

Keywords

Unemployment Social participation Plant closure Entropy balancing SOEP 

JEL Classification

J64 I31 

References

  1. Alesina A, La Ferrara E (2000) Participation in heterogeneous communities. Q J Econ 115(3):847–904CrossRefGoogle Scholar
  2. Anderberg D, Rainer H, Wadsworth J, Wilson T (2016) Unemployment and domestic violence: theory and evidence. Econ J 126(597):1947–1979CrossRefGoogle Scholar
  3. Bauernschuster S, Falck O, Woessmann L (2014) Surfing alone? The internet and social capital: evidence from an unforeseeable technological mistake. J Public Econ 117(C):73–89CrossRefGoogle Scholar
  4. Bubonya M, Cobb-Clark DA, Wooden M (2014) A family affair: job loss and the mental health of spouses and adolescents, Melbourne Institute Working Paper Series 23/14, Melbourne Institute of Applied Economic and Social Research, The University of MelbourneGoogle Scholar
  5. Clark AE (2003) Unemployment as a social norm: psychological evidence from panel data. J Labor Econ 21(2):323–351CrossRefGoogle Scholar
  6. Doiron D, Mendolia S (2012) The impact of job loss on family dissolution. J Popul Econ 25:367–398CrossRefGoogle Scholar
  7. Hainmueller J (2012) Entropy balancing for causal effects: a multivariate reweighting method to produce balanced samples in observational studies. Political Anal 20:25–46CrossRefGoogle Scholar
  8. Haisken-DeNew JP, Hahn M (2010) Panelwhiz: efficient data extraction of complex panel data sets—an example using the german SOEP. Schmollers Jahrbuch 130(4):643–654CrossRefGoogle Scholar
  9. Heckman JJ, Ichimura H, Todd PE (1997) Matching as an econometric evaluation estimator: evidence from evaluating a job training programme. Rev Econ Stud 24:605–654CrossRefGoogle Scholar
  10. Horvitz DG, Thompson DJ (1952) A generalization of sampling without replacement from a finite universe. J Am Stat Assoc 47(260):663–685CrossRefGoogle Scholar
  11. Jahoda M (1982) Employment and unemployment: a social-psychological analysis. The psychology of social issues. Cambridge University Press, CambridgeGoogle Scholar
  12. Jahoda M, Lazarsfeld PF, Zeisel H (1974) Marienthal: the sociography of an unemployed community. Social science paperbacks. Transaction Publishers, PiscatawayGoogle Scholar
  13. Kassenböhmer SC, Haisken-DeNew JP (2009) You’re fired! The causal negative effect of entry unemployment on life satisfaction. Econ J 119:448–462CrossRefGoogle Scholar
  14. Komarovsky MA (2004) The unemployed man and his family: the effect of unemployment upon the status of the man in fifty-nine families, classics in gender studies. AltaMira Press, LanhamGoogle Scholar
  15. Kunze L, Suppa N (2017) Bowling alone or bowling at all? The effect of unemployment on social participation. J Econ Behav Organ 133:213–235CrossRefGoogle Scholar
  16. Marcus J (2013) The effect of unemployment on the mental health of spouses—evidence from plant closures in Germany. J Health Econ 32(3):546–558CrossRefGoogle Scholar
  17. Mendolia S (2014) The impact of husband’s job loss on partners’ mental health. Rev Econ Househ 12(2):277–294CrossRefGoogle Scholar
  18. Nikolova M, Ayhan SH (2018) Your spouse is fired! How much do you care? J Popul Econ.  https://doi.org/10.1007/s00148-018-0693-0
  19. Putnam R (2001) Bowling alone. Simon & Schuster, New YorkGoogle Scholar
  20. Salm M (2009) Does job loss cause ill health? Health Econ 18:1075–1089CrossRefGoogle Scholar
  21. Schmitz H (2011) Why are the unemployed in worse health? The causal effect of unemployment on health. Labour Econ 18(1):71–78CrossRefGoogle Scholar
  22. Sen AK (2000) Social exclusion: concept, application, and scrutiny, social development papers, vol 1. ADB, ManilaGoogle Scholar
  23. Stiglitz JE, Sen AK, Fitoussi JP (2009) Report by the commission on the measurement of economic performance and social progress. Technical report, commission on the Measurement of Economic Performance and Social ProgressGoogle Scholar
  24. Sullivan D, von Wachter T (2009) Job displacement and mortality: an analysis using administrative data. Q J Econ 124:1265–1306CrossRefGoogle Scholar
  25. Wagner GG, Frick JR, Schupp J (2007) The German socio-economic panel study (soep): scope, evolution and enhancements. Schmollers Jahrbuch 127(1):139–169Google Scholar
  26. Westfall PH, Young SS (1993) Resampling-based multiple testing: examples and methods for p-value adjustment. Wiley, New YorkGoogle Scholar
  27. Winkelmann L, Winkelmann R (1998) Why are the unemployed so unhappy? Evidence from panel data. Economica 65(257):1–15CrossRefGoogle Scholar
  28. Wooldridge JM (2010) Econometric analysis of cross section and panel data. MIT Press, CambridgeGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsTU DortmundDortmundGermany

Personalised recommendations