Does the added worker effect matter?

The added worker effect (AWE) measures the entry of individuals into labor force due to their partners’ adverse market outcomes. We propose a new method calculate AWE that allows us estimate its on any outcome. reduces fraction households with two non-employed members by 16% for 1977-2018 period; 28% in 1990 recession and 23% during great recession. also accounts why women’s employment is much less cyclical more symmetric than men’s. Without AWE, married would be as volatile men display negative skewness (declining quickly recessions recovering slowly expansions). In recessions, while some women lose employment, others enter find jobs. This keeps female relatively stable.