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Employment and Social Developments in Europe 2014
Box 1: Some mixed evidence about ‘added-worker highest tend to be those with relatively
effects’ during the recession limited support for the unemployed or
49
the long-term unemployed ( ). Gener-
A recession can impact on labour market participation of ‘partnered’ women in two ally speaking, the countries that recorded
ways: (a) it can discourage women from looking for a job or postpone their decision increases in discouraged workers since
50
(discouragement effect) or (b) it can foster participation in order to compensate for 2008 ( ) were those that combined a
the job loss of the partner (added-worker effect). It is hard to determine whether strong labour market impact of the crisis
the increase in female participation was due partly to the latter — or whether it and relatively weak support services to
was entirely caused by other structural factors due to education and cohort effects. the unemployed ( 51 ), whether in terms of
Several reports support the added worker hypothesis without being totally conclusive: spending on active labour market policies
or income support.
• European Commission (2011b) shows that the activity rate of married women
with children was more reactive to male unemployment and that it has increased There can also be other explanatory fac-
faster since 2008 than for other women*. tors such as the extent to which there
• OECD (2012a) shows that in many countries partnered women were more likely are, or are not, incentives to register
to have increased their working hours during the crisis than single women. as unemployed, the link to social assis-
tance schemes, or the actual probability
• European Commission (2012b) points out that over 2007–09, dual-earner of finding a job. The availability of care
couples had lost ground mainly to the benefit of female breadwinner couples.
services for children or dependents may
• European Commission (2013) shows that over 2007–11, the share of working also affect the labour supply given that
women with a non-working male partner increased in most Member States. 36 % of ‘discouraged workers’ in 2013
• Bredtmann et al (2014) found that women whose partner becomes unemployed were women of prime-age (25–54),
a group more likely to be affected by
have a higher chances of entering the labour market and changing from part- issues related to the combination of work
time to full-time employment than women whose partner remains employed. and family life. This share was highest
The added worker effect varies over both the business cycle and the different in Spain (41 %), Italy (47 %) and Greece
welfare regimes within Europe**.
(49 %), all countries recognised as being
• EU-SILC*** data do not show such added-worker effect, as women’s transitions poor performers in terms of supporting
from inactivity to employment and from part-time to full-time employment do improved work-life balance ( ).
52
not increase between 2007 and 2012.
While there is no robust evidence of an added-worker effect during the crisis, the Remaining in education
stronger share of women in employment, hours worked and earnings and the
increasing share of dual-earner households has helped to cushion the impact of Since 2008, an increasing number
the recession on household incomes (OECD (2014c)). of young people have remained in, or
have returned to, education, notably
within the younger age group (18–24)
Notes: * However, this is not true for all countries and may be due to other effects — for instance
the increase in investment in childcare facilities. ** For instance, for the UK, Bryan and Longhi (2013) and especially in Member States where
found an increase in job searches but only among single earner couples —which does not translate youth unemployment was especially high
into more success in finding work (consistent with declining job-finding rate), at least in the short- (Spain, Ireland and Portugal) and where
term. *** Eurostat, EU-SILC, [ilc_lvhl30]. Note that these indicators are not available for different
groups of women (partnered or not, with or without children). the share of young people in education
had been below the EU average in 2004.
In some countries however, participation
Limited increase in discouraged unemployment ( 48 ) and can be viewed as in education has either stalled (Greece,
workers during the recession a positive sign insofar as it means that Italy, Romania, the Czech Republic and
unemployed persons continue to look for a Slovakia), or even declined (Poland and
The number of persons available and want - job and can potentially benefit from activa - Hungary).
ing to work but not looking for a job ( ) (the tion or (re)training.
47
‘discouraged workers’) increased from 7.4 ( ) In 2013, a very low share of long-term
49
million in 2008 to 9.3 million in 2013 (or Institutional factors can contribute to unemployed were receiving unemployment
from 3.1 % to 3.8 % of the labour force). limiting the number of discouraged benefits (or assistance) in Italy (2 %),
Croatia (10 %), Bulgaria (1 %), Latvia (3 %)
This increase was much lower than the workers. For instance, countries where or Estonia (4 %), all characterised by a
increase in unemployment and long-term the share of discouraged workers is the higher than average share of discouraged
workers –while the receipt rate of benefits
was rather high in some of the countries
displaying a low share of ‘discouraged
( ) These are jobless persons (neither employed workers’ such as France, Germany, Malta,
47
nor unemployed) who do not qualify for Belgium and Denmark.
recording as unemployed (from the ILO ( ) Croatia and Cyprus (strong increase) and
50
definition) because they are not actively Finland, Romania, Spain, Italy, Hungary,
looking for a job (anymore), despite the fact Greece and Slovenia (significant increase).
that they want to work and are available 51
for work. According to Eurostat, they include ( ) According to typology presented in Stovicek
‘discouraged workers but also persons and Turrini (2012)
prevented from job seeking due to personal ( ) They display high gender employment gaps,
52
or family circumstances’. However, for ( ) Since 2008, the number of unemployed high incidence of inactivity due to family
48
convenience, this Section uses the term increased from 16.8 million to 26.4 million obligations as well as relatively insufficient
‘discouraged workers’ to refer to all the in 2013, and the number of long-term provision of child and/or dependent care
inactive persons wanting to work but not unemployed almost doubled in the same facilities (see European Commission (2013),
looking for a job. period (from 6.2 million to 12.3 million). Chapter 3).
52
Box 1: Some mixed evidence about ‘added-worker highest tend to be those with relatively
effects’ during the recession limited support for the unemployed or
49
the long-term unemployed ( ). Gener-
A recession can impact on labour market participation of ‘partnered’ women in two ally speaking, the countries that recorded
ways: (a) it can discourage women from looking for a job or postpone their decision increases in discouraged workers since
50
(discouragement effect) or (b) it can foster participation in order to compensate for 2008 ( ) were those that combined a
the job loss of the partner (added-worker effect). It is hard to determine whether strong labour market impact of the crisis
the increase in female participation was due partly to the latter — or whether it and relatively weak support services to
was entirely caused by other structural factors due to education and cohort effects. the unemployed ( 51 ), whether in terms of
Several reports support the added worker hypothesis without being totally conclusive: spending on active labour market policies
or income support.
• European Commission (2011b) shows that the activity rate of married women
with children was more reactive to male unemployment and that it has increased There can also be other explanatory fac-
faster since 2008 than for other women*. tors such as the extent to which there
• OECD (2012a) shows that in many countries partnered women were more likely are, or are not, incentives to register
to have increased their working hours during the crisis than single women. as unemployed, the link to social assis-
tance schemes, or the actual probability
• European Commission (2012b) points out that over 2007–09, dual-earner of finding a job. The availability of care
couples had lost ground mainly to the benefit of female breadwinner couples.
services for children or dependents may
• European Commission (2013) shows that over 2007–11, the share of working also affect the labour supply given that
women with a non-working male partner increased in most Member States. 36 % of ‘discouraged workers’ in 2013
• Bredtmann et al (2014) found that women whose partner becomes unemployed were women of prime-age (25–54),
a group more likely to be affected by
have a higher chances of entering the labour market and changing from part- issues related to the combination of work
time to full-time employment than women whose partner remains employed. and family life. This share was highest
The added worker effect varies over both the business cycle and the different in Spain (41 %), Italy (47 %) and Greece
welfare regimes within Europe**.
(49 %), all countries recognised as being
• EU-SILC*** data do not show such added-worker effect, as women’s transitions poor performers in terms of supporting
from inactivity to employment and from part-time to full-time employment do improved work-life balance ( ).
52
not increase between 2007 and 2012.
While there is no robust evidence of an added-worker effect during the crisis, the Remaining in education
stronger share of women in employment, hours worked and earnings and the
increasing share of dual-earner households has helped to cushion the impact of Since 2008, an increasing number
the recession on household incomes (OECD (2014c)). of young people have remained in, or
have returned to, education, notably
within the younger age group (18–24)
Notes: * However, this is not true for all countries and may be due to other effects — for instance
the increase in investment in childcare facilities. ** For instance, for the UK, Bryan and Longhi (2013) and especially in Member States where
found an increase in job searches but only among single earner couples —which does not translate youth unemployment was especially high
into more success in finding work (consistent with declining job-finding rate), at least in the short- (Spain, Ireland and Portugal) and where
term. *** Eurostat, EU-SILC, [ilc_lvhl30]. Note that these indicators are not available for different
groups of women (partnered or not, with or without children). the share of young people in education
had been below the EU average in 2004.
In some countries however, participation
Limited increase in discouraged unemployment ( 48 ) and can be viewed as in education has either stalled (Greece,
workers during the recession a positive sign insofar as it means that Italy, Romania, the Czech Republic and
unemployed persons continue to look for a Slovakia), or even declined (Poland and
The number of persons available and want - job and can potentially benefit from activa - Hungary).
ing to work but not looking for a job ( ) (the tion or (re)training.
47
‘discouraged workers’) increased from 7.4 ( ) In 2013, a very low share of long-term
49
million in 2008 to 9.3 million in 2013 (or Institutional factors can contribute to unemployed were receiving unemployment
from 3.1 % to 3.8 % of the labour force). limiting the number of discouraged benefits (or assistance) in Italy (2 %),
Croatia (10 %), Bulgaria (1 %), Latvia (3 %)
This increase was much lower than the workers. For instance, countries where or Estonia (4 %), all characterised by a
increase in unemployment and long-term the share of discouraged workers is the higher than average share of discouraged
workers –while the receipt rate of benefits
was rather high in some of the countries
displaying a low share of ‘discouraged
( ) These are jobless persons (neither employed workers’ such as France, Germany, Malta,
47
nor unemployed) who do not qualify for Belgium and Denmark.
recording as unemployed (from the ILO ( ) Croatia and Cyprus (strong increase) and
50
definition) because they are not actively Finland, Romania, Spain, Italy, Hungary,
looking for a job (anymore), despite the fact Greece and Slovenia (significant increase).
that they want to work and are available 51
for work. According to Eurostat, they include ( ) According to typology presented in Stovicek
‘discouraged workers but also persons and Turrini (2012)
prevented from job seeking due to personal ( ) They display high gender employment gaps,
52
or family circumstances’. However, for ( ) Since 2008, the number of unemployed high incidence of inactivity due to family
48
convenience, this Section uses the term increased from 16.8 million to 26.4 million obligations as well as relatively insufficient
‘discouraged workers’ to refer to all the in 2013, and the number of long-term provision of child and/or dependent care
inactive persons wanting to work but not unemployed almost doubled in the same facilities (see European Commission (2013),
looking for a job. period (from 6.2 million to 12.3 million). Chapter 3).
52
