The Withdrawal from Paid Work of the Wives of Unemployed Men: A Review of Research

Evidence from surveys suggests that when married men become unemployed their wives tend also to withdraw from paid work. This apparent relationship between the labour supply behaviour of spouses has never been fully explained. One of the most frequently cited reasons for this effect is the very small amount that wives are able to earn without incurring deductions from the family's social security benefits, but other factors may be equally, or more, important. This article reviews both the evidence of this effect and a number of reasons that have been adduced to account for it, and ends with proposals for further explanatory research.