Labor Market Participation, Home Production and the Demand for Unskilled Labor
In the course of increasing labor market participation, especially among women, and rising wealth, one observes an increase in outsourcing of home production. Cleaning ladies and house maids, but also restaurants, garages and kindergartens, take over work that has formerly been done by the people themselves. The process creates new jobs for unskilled workers in the service sector. Against this background, Melanie Lührmann and Matthias Weiss have examined the effects of prolonging the number of working hours per week or the impact of increasing labour market participation on the demand for unskilled labor and unemployment.