Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30234 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
Working Paper Series in Economics No. 161
Publisher: 
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre, Lüneburg
Abstract: 
In this paper, I contrast the effects of individual and spousal disability on subjective wellbeing and labor supply using data on couples from the German Socio-Economic Panel for the years 1984 to 2006. I find that both men and women reduce their propensity to work when they or their partner become disabled. The effects of spousal disability are economically large. I find no evidence for hours and wage adjustments by spousal disability, although there are wage effects of individual disability. The life-satisfaction of women, but not of men, is reduced considerably by their partners’ disability. The effects are about 33 to 50% as large as those of individual disability. I also find no evidence that individuals adapt to their partners’ disability, although there is adaption to individual disability.
Subjects: 
Disability
labor supply
subjective well-being
adaption
other-regarding preferences
JEL: 
D64
I10
J14
Document Type: 
Working Paper

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