Households’ responses to spousal job loss: ‘all change’ or ‘carry on as usual’?

1. Households’ responses to spousal job loss: ‘all change’ or ‘carry on as usual’? Karon Gush James Scott Heather Laurie Understanding Society Research Conference, 24-26July 2013, University of Essex

5. Couple households’ responses to job loss • Job loss/reductions to paid working hours = a potentially serious threat to the economic stability of a household • What does this mean for the way paid and unpaid labour is shared between couples? • In what ways does a partner react to changes in their spouses’ labour market behaviour? • What kinds of coping strategies do households adopt to weather periods of economic uncertainty? • What are the processes and motivations behind couples’ responses to changes in labour market conditions?

6. Changes in spousal paid labour supply Empirical results = mixed • Added worker effect (AWE) • None: Layard et al (1980), Maloney (1987, 1991) • Small: Lundberg (1985), Cullen & Gruber (2000) • Small: pre-job loss, larger post-job loss: Stephens (2002) • ‘Great Recession’: • Wives more likely to take on paid work in a recession Mattingly & Smith (2010) • Women with unemp. partners work more hours than those with emp.partners: Harkness & Evans (2011) • Discouraged worker effect (DWE) Bingley & Walker (2001) • Disincentives UK tax and benefits system Irwin & Morris (1993), McGinnity (2002), Harkness & Evans (2011)

7. The division of labour within a household • Process of ‘socially negotiated moral understandings’ (Duncan et al, 2003) • Traditional ideologies remain/Challenge to ‘provider’ status • Legerski & Cornwall (2010), Jones (1992) Braun et al (2011) • The rise of the ‘dual breadwinner model’ • Crompton & Harris (1999), Lewis (2001) • ‘Resilience’ • Strong capacities for coping with adversity - Harrow (2009) Batty and Cole (2010) • ‘Not a bottomless pit’ - Harrison (2010)

8. Research questions • In what ways do couples act when faced with job loss: • Are these pro-active or re-active? • What kinds of short term and/or long term approaches do couples adopt? • Do they seek to maintain/regain their erstwhile share of paid and unpaid labour once their labour market prospects improve?

9. Data • Primary data collection • Associated Study on Understanding Society • Sample selection • Understanding Society Innovation Panel Waves 1 - 4: cases experienced job loss or change in hours >10 hrs per week. • Purposive sample spread across England - clustered mainly in London/SE and the Midlands but including Devon/Lancs./ Cumbria/Yorks. • 17 couples (30 respondents) • 11 separately, 2 together, 4 one partner only • Methodology • In-depth qualitative interviews • Length = approx 30 mins – 1 hour • Couples interviewed individually (where possible)

10. Do couples act pro-actively or reactively? • Respondents didn’t always see it coming, sometimes despite numerous outwards indicators of potential job loss • Avoid acting pro-actively on observable signs • Simply hope that if there are redundancies they won’t be affected. • This behaviour is evident in those who have experienced redundancy and those who are currently observing a downward turn in their employment context.

11. Anticipated shocks? Do couples act pro-actively or reactively? “it was inevitable. They were going to sort of get rid of him....But it was a shock. I think he sort of got an inkling it was going to happen, but of course you go on and you think, “Oh, it might blow over,” but you get a gut feeling....So I would say probably about four weeks,.... you know, before we knew. But even then, you know, we didn’t know. And when it did happen, we were absolutely gobsmacked.” [Gail, Catering Assistant, Worcestershire.]

12. ‘Hanging in there’ Do couples act pro-actively or reactively? “You’ve got the choice of either hoping things are going to get better or decide there’s some better opportunities elsewhere, and to move and at the moment, I’m just hanging in there...... I was put at risk redundancy-wise, I’ve just come through that and it could well be that if things don’t get better that will happen again. [Ian, IT Specialist, Berkshire]

13. Short term and/or long term approaches? • Short term aims • Short term measures • E.g. panicking and taking the first job that comes along - and sometimes later wishing they hadn’t • Long term aims • Short term measures • E.g. concerns about lengthy workplace absences – need to act quickly to maintain a career • Long term measures • E.g. changes in lifestyle

14. ‘Panic’..... • Short term and/or long term approaches? And I was thinking, who’s gonna want to employ me, nearly 50 years of age...I was quite surprised when they took me in. I regretted going there...financially, we obviously, we got some redundancy money to save...walking into a job straight away that then becomes a bit of a benefit. But I just wish that I took a little bit more time and...try and find something more suited to what I want, you know, to what I would've enjoyed more rather than just panicking and taking the first thing that sort of came along’ [Dave, Health Care Assistant, Worcestershire]

15. ...to stay in the ‘game’.... • Short term and/or long term approaches? I didn’t really want to go full-time......my concern, when my last school closed down was that...I’m not a cheap teacher anymore. I’m not easy to employ because I’m more expensive. Students... people just leaving college are obviously more a bit more desirable because they’re cheaper with no experience but nevertheless school budgets are...dictate that. My job...you need to keep in my job otherwise, you lose touch what’s going on” [Wendy, Teacher, London]

16. ......or a change of lifestyle. • Short term and/or long term approaches? • Lifestyle preferences • Fostering, charity work, spending time with grandchildren, starting a family • “...in a way, for us, it came at quite a good time because...they said, “Yeah, you can start [IVF] in the June” and obviously, I got made redundant in the June...... I did get offered a job just before the shop closed and I was like in two minds to take it and then we just decided, you know, just to concentrate on [the IVF] [Claire, Stay-at-home-mum, Devon]

17. Do couples seek to maintain/regain erstwhile status quo? • Emphasis on getting the unemployed partner back into work • Resistance to substantial changes in the share of paid and unpaid labour between couples • Other income smoothing techniques – ‘cutting down’ on general household expenditure/leisure activities, restructuring finances, drawing on savings and money from family • But things would have been different if in serious financial hardship • sdf

18. Do couples seek to maintain/regain erstwhile status quo? • Well, when I'm looking for a job, [my wife] is up there with me looking as well. And when I'm not at home, if I'm doing something else, she's, she'll spend time looking for a job for me on the Internet as well. [Dave, Health Care Assistant, Worcestershire] • No, I wouldn’t…well, no, I probably wouldn’t be able to [increase work hours]. It’s only a morning nursery anyway, and I do three mornings. And they wouldn’t take me on the other two days if we haven’t got, you know, the children. We’ve got enough staff, so I probably wouldn’t be able to increase my hours. [Sarah, Nursery Assistant, Surrey]

19. Conclusions • Qualitative evidence offers some insight as to why the expected added worker effect in quantitative studies is often not present or quite small • The use of additional spousal labour as a response to unemployment is one response amongst a set of alternatives • Couples may prefer to exhaust all other alternatives before invoking additional spousal labour • Couples seem work very hard to retain a status quo in their division of labour • Unless a change facilitates the realisation of a long term aim • To avoid making unnecessary changes to their share of labour couples appear to act re-actively

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