We study the effectiveness of intra-household insurance among married couples when the husband loses his job due to a … gains recover only a tiny fraction of the household income loss and, in the short-term, public transfers and taxes are a … more important form of insurance. We show that the presence of children in the household is a crucial determinant of the …

Security Database. We show that in our sample of relatively young couples the shock hits households at crucial stages of family … small, about -0:04. While the wives' earnings gains recover only a tiny fraction of the household income loss, public …. The presence and ages of children in the household are crucial determinants of the wife's labor supply response. The most …