Basu, Kaushik; Genicot, Garance; Stiglitz, Joseph E. - 2011
If people's labor-supply decisions are taken at the level of the household, it is natural to expect aggregate demand … and unemployment to influence the supply curve of labor. An increase in unemployment could prompt households to send more … workers out in search of work to insure against the risk of the primary worker getting unemployed (the "added worker effect …