Labour Supply as a Buffer

Evidence from UK Households

Datos Bibliográficos

ID9727349
AutoresANDREW BENITO (Bank of England and IZA), Jumana Saleheen (0000-0001-7058-0395, Bank of England and IZA)
Año2013
Volumen80
Número320
Páginas698-720
Fecha de publicación2013-10-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomica (JOURNAL)
Identificadores de la revistaISSN: 0013-0427 • E-ISSN: 1468-0335
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ecca.12030
OpenAlexW3121355409
IdiomaEN
Citas recibidas3
Referencias citadas29

This paper examines how individuals use their labour supply—hours of work and participation decisions—as a margin of adjustment or ‘buffer’ in response to financial shocks. The financial shock measure is constructed using individuals' expected change to their financial situation in the year ahead relative to the perceived outcome one year later. Using BHPS data, we find that both men and women adjust their labour supply in response to financial shocks. The propensity to participate in the labour market also appears to respond to the experience of a financial shock, but is less robust

Business · Demographic economics · Economics · Labour economics · Labour supply · Margin (machine learning) · Monetary economics · Propensity score matching · Shock (circulatory) · Work (physics) · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Retirement, Disability, and Employment