Abstract
Joblessness is highly seasonal. To analyze how households adapt to seasonal joblessness, the authors introduce a measure of seasonal work interruptions premised on the idea that a seasonal worker will tend to exit employment around the same time each year. They show that an excess share of prime-age US workers experience recurrent separations spaced exactly 12 months apart. Examining workers most prone to seasonal work interruptions, the authors find that they incur large earnings losses during the off-season that are little offset by other sources of income. On net, household income falls by about $0.80 for each $1.00 lost in an individual’s own earnings.
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