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Title:Social insurance networks PDF Logo
Authors:Markussen, Simen
Røed, Knut
Issue Date:2012
Series/Report no.:Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6446
Abstract:Based on administrative panel data from Norway, we examine how social insurance dependency spreads within neighborhoods, families, ethnic minorities, and among former schoolmates. We use a fixed effects methodology that accounts for endogenous group formation, contextual interactions, and time-constant as well as time-varying confounders. We report evidence that social insurance dependency is contagious. The estimated network effects are both quantitatively and statistically significant, and they rise rapidly with relational closeness in a way that establishes endogenous social interaction as a central causal mechanism. Social interactions do not cross ethnic borders.
Subjects:social interaction
social multiplier
work norms
peer effects
JEL:C31
H55
I38
Persistent Identifier of the first edition:urn:nbn:de:101:1-201207127091
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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