Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 31, 2023 erstellt
Beschreibung:
This study examines how households mitigate the negative income shock caused by job loss through monetary insurance channels, such as spousal labor supply or unemployment benefits, and changes in their time allocation. The event study estimation using panel data of Japanese households shows that husband’s involuntary job loss reduces both his earnings and household consumption. However, the magnitude of the consumption decline is only 20% of the earnings drop. The result suggests that four-fifths of the shocks are insured. In addition, this study finds that government transfers play a vital role in short-run insurance and that households reduce their saving allocations. However, it finds no suggestive evidence that the wife’s labor supply contributes to consumption insurance. This study also confirms that the treated husband spends approximately three times as much time on housework and childcare, compensating for his loss of earnings