The intra _ household labor supply responses of siblings to job loss for primary earners in a household Is there an added worker effect over the period 1999 - 2012?

Abstract

The main objective of this paper is to investigate if there is an added worker effect in West Bank over the period 1999 – 2012. More specifically, we will assess the probability of sibling to enter the labor force in response to his/her male household’s head loss of employment. After introducing the topic and survey the economic literature on the issue under study and discussing the data used and introducing the econometric technique, we estimate a Bivariate Probit model with Panel data to achieve the aforementioned objective, and we did not accept the added worker hypothesis, and concluded that the sibling decision whether to participate in the labor force or not is not directly related to his/her household’s head employment status but rather it depends on the sibling specific individual characteristics such as age, gender, and educational attainment.