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Title:Insured by the partner? PDF Logo
Authors:Olsson, Marton
Skogman Thoursie, Peter
Issue Date:2010
Series/Report no.:Working paper // IFAU - Institute for Labour Market Policy Evaluation 2010:3
Abstract:This paper investigates whether the partner's social insurance coverage affects spousal labor supply. Using a reform which increased the sickness insurance coverage for non-government workers, the spousal elasticity of sick days with respect to the partner's benefit is estimated to 0.4. Additional analysis indicates that the partner's insurance coverage is partly affecting spousal labor supply through an insurance effect and the overall effect is particularly large among low income families. Joint leisure is not found to have an effect on the overall effect. We conclude that spouses pool their supply of la-bor. Thus if policy evaluations ignore spousal interactions they will underestimate the effect.
Subjects:Spousal labor supply
spill-over
social insurance programs
JEL:H31
J22
Document Type:Working Paper
Appears in Collections:Working Papers, IFAU - Institute for Evaluation of Labour Market and Education Policy

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