Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215772 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
Working Paper Series No. 21
Publisher: 
University of Waterloo, Canadian Labour Economics Forum (CLEF), Waterloo
Abstract: 
This paper examines married women's time allocation to market hours and spousal care in the event of their husbands' disability and its implications for evaluating the insurance value of the Social Security Disability Insurance (SSDI) program. First, I find that while spousal labor supply responses to husbands' disability are small, wives spend a sizable amount of time in spousal care after their husbands become disabled. Motivated by these facts, I develop a dynamic model of married households that incorporates husbands' disability status, wives' time allocation choices, health state dependent utility, and the institutional features of SSDI. Counterfactual experiments indicate that caregiving needs substantially attenuate spousal labor supply responses and increase the insurance value of SSDI relative to its costs. Furthermore, policy
Subjects: 
disability
social security
spousal labor supply
caregiving
JEL: 
D13
D15
H53
H55
I38
J22
Document Type: 
Working Paper

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