Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58671
Authors: 
Markussen, Simen
Røed, Knut
Year of Publication: 
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: 
Document Type: 
Working Paper

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