Family welfare and the cost of unemployment

Arbeitspapier

This paper calculates the cost of an unemployment shock in terms of family welfare for married and single families separately and by education level. We find that, overall, families face an average annualized expected dollar equivalent welfare loss of $1,156 when the unemployment rate rises by 1 percentage point. The average welfare loss for married families is greater than the average loss for single families and increases in education. We then estimate that a price level increase of 1.8 percent generates the same amount of welfare loss. We also find that the average welfare loss from a shock to prices versus a shock to unemployment rises with income.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2017-7

Classification and Topics

• Classification: Wirtschaft ; Welfare, Well-Being, and Poverty: General ; Monetary Policy ; Time Allocation and Labor Supply ; Household Behavior and Family Economics: Other
• Subject: family welfare ; joint labor supply ; microsimulation dual mandate ; monetary policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hotchkiss, Julie L. ; Moore, Robert E. ; Rios-Avila, Fernando
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Atlanta
• (where): Atlanta, Ga.
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/200555
• Last update: 10.03.2025, 11:44 AM CET