Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45766 
Year of Publication: 
2010
Series/Report no.: 
Working Paper No. 2010:3
Publisher: 
Institute for Labour Market Policy Evaluation (IFAU), Uppsala
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

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