Open Access BASE

Marriage as Insurance: Job Protection and Job Insecurity in France

Clark, Andrew E; D'Ambrosio, Conchita; Lepinteur, Anthony

Open Access

Abstract

Job insecurity is one type of risk that workers face on the labour market. As with any risk, individuals can choose to insure against it. We consider marriage as potential insurance against labour-market risk. The 1999 rise in the French Delalande layoff tax for older workers produced an exogenous rise in job insecurity for younger workers. A difference-in-differences estimation in panel data reveals that this greater job insecurity for the under-50s led to a significant rise in their probability of marriage, and especially with partners who had greater job security, consistent with marriage providing insurance on the labour market.

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