This article uses data from the longitudinal Household, Income, and Labour Dynamics in Australia survey to examine cross-spousal influences on workforce transitions by men ( n = 4667) and women ( n = 5051) aged 50–69. We assess how gender patterns in employment (full- and part-time work) and non-employment activity (unemployment, non-employment and homemaking) changed among this age group over the period 2001–2017, which included the Global Financial Crisis (GFC) of 2008. Notwithstanding that more men than women were in full-time work, and more women than men were employed part time or were homemakers, over the period there was an overall rise in employment for both genders, which following the GFC continued most strongly for women. Random effects logistic regression on partnered men and women showed that prior to the GFC one spouse transitioning out of the labour market was associated with significantly higher odds of the other spouse also doing so. This implies coordination, for example spouses retiring together. In contrast, following the GFC, one spouse leaving paid employment was associated with higher odds of the other taking up work or increasing their hours, suggesting that the economic slowdown encouraged an added worker effect in those households, with one spouse compensating for the job loss of the other. The finding was apparent for both men and women.
Does the Added Worker Effect Matter?
