We are pleased to share that our paper “His Unemployment, Her Response, and the Moderating Role of Welfare Policies in European Countries”, has been published in the journal PLOS ONE. Authored by Anna Matysiak, Anna Kurowska, and Alina Maria Pavelea, the study explores how welfare policies, such as unemployment benefits, tax systems, and childcare provision, shape women’s labour market response when their male partner becomes unemployed. Using data from 24 European countries between 2009 and 2019, the research provides an in-depth analysis of how these policy frameworks impact economic decisions within couples, particularly for women who are either not working or employed part-time.
Key findings reveal that both non-working women and those employed part-time increase their labour supply in response to their partner’s unemployment but the magnitude of this response is rather weak. Non-working women are 6.41% more likely to enter the workforce, while part-time workers are 8.15% more likely to increase their working hours after their male partner becomes unemployed. Childcare availability for young children, particularly those aged 0-3, plays a crucial role in supporting women’s ability to increase their labour supply, highlighting the importance of accessible childcare services in mitigating the effects of economic shocks on families.
The study also challenges some common assumptions about welfare policies. For instance, it finds that generous unemployment benefits do not disincentivise women from seeking work after the male partner becomes unemployed. This finding counters the notion that such benefits discourage labour market participation. However, higher marginal tax rates are shown to deter non-working women from entering employment after their partner’s job loss, suggesting that tax policies can inadvertently create barriers to labour market entry.
This research underscores the importance of well-designed welfare policies in helping women, particularly mothers, balance work and family responsibilities when confronted with the unemployment of the main breadwinner. By enhancing access to affordable childcare and addressing tax-related disincentives, policymakers can help improve women’s labour market responses, promoting both financial stability and gender equality.
The full paper can be read here.