Family Welfare and the Great Recession
Julie L. Hotchkiss, Robert E. Moore, and Fernando Rios-Avila
Working Paper 2014-10
The analysis in this paper provides estimates of family welfare losses generated by wage and nonlabor income declines experienced across the Great Recession and by labor market constraints existing postrecession. Welfare losses are greater as families (both married and single) move up the income distribution. Total static welfare losses are estimated to amount to roughly $190 billion, comparing family welfare between 2007 and 2011.
JEL classification: I30, J22, D19, E32
Key words: family welfare, joint labor supply, microsimulation, constrained hours
This paper has benefited from comments from participants at the Federal Reserve System Meeting on Applied Microeconomics and the Western Economic Association. The views expressed here are the authors' and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Any remaining errors are the authors' responsibility.
Please address questions regarding content to Julie Hotchkiss, Research Department, Federal Reserve Bank of Atlanta and Georgia State University, 1000 Peachtree Street NE, Atlanta, GA 30309-4470; 404-498-8198, firstname.lastname@example.org; Robert E. Moore, Andrew Young School of Policy Studies, Georgia State University, PO Box 3992, Atlanta, GA 30302-3992, 404-413-0056, email@example.com; or Fernando Rios-Avila, Levy Economics Institute of Bard College, Blithewood, Annandale-on-Hudson, NY 12504-5000, 845-758-7719, firstname.lastname@example.org.
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