The rise of low-skill service employment: The role of dual-earner households

Jongkwan Lee, Myungkyu Shim, Hee Seung Yang

Research output: Contribution to journalArticlepeer-review

Abstract

This paper unveils an important but unexplored channel for the growth of low-skill service employment between 1960 and 2010: the spillover from dual-earner households. In particular, we analyze the cross-city association between variation in dual-earner households and employment growth in home production substitutes. To address concerns about endogeneity, we use the fact that married working women were extremely concentrated on administrative support occupations, while their birth places were heterogeneously distributed. Our results show that one more dual-earner couple creates 0.3 low-skill service jobs in local economies, and the effect mainly comes from the home production service sector.

Original languageEnglish
Pages (from-to)255-273
Number of pages19
JournalJournal of Economic Behavior and Organization
Volume202
DOIs
StatePublished - Oct 2022

Bibliographical note

Funding Information:
We would like to thank the associate editor and two anonymous referees for their valuable comments. We would like to thank Matthew Notowidigdo, Vasco Yasenov, seminar and conference participants at Yonsei University, Sogang University, 2018 Asian and Australasian Society of Labour Economics Conference, and 2019 Meeting of the Urban Economics Association. Shim and Yang acknowledge the financial support from Yonsei University (Yonsei Signature Research Cluster Program of 2021-22-0011 and Yonsei Research Grant of 2020-22-0386, respectively).

Funding Information:
We would like to thank the associate editor and two anonymous referees for their valuable comments. We would like to thank Matthew Notowidigdo, Vasco Yasenov, seminar and conference participants at Yonsei University, Sogang University, 2018 Asian and Australasian Society of Labour Economics Conference, and 2019 Meeting of the Urban Economics Association. Shim and Yang acknowledge the financial support from Yonsei University (Yonsei Signature Research Cluster Program of 2021-22-0011 and Yonsei Research Grant of 2020-22-0386, respectively).

Publisher Copyright:
© 2022 Elsevier B.V.

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