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The Spirit of the Welfare State? Adaptation in the Demand for Social Insurance

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  • Martin Ljunge

    (Department of Economics)

Abstract

Young generations demand substantially more social insurance than older generations, although program rules have been constant for decades. I postulate a model where the utility of taking up social insurance benefits depends on the past behavior of older generations. The model is estimated with individual panel data. The intertemporal mechanism estimated can account for half of the younger generations’ higher demand for social insurance benefits. The influence of older generations’ behavior remains when instrumenting using mortality rates, which makes a compelling case for a causal intertemporal influence on individual demand.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 11-30.

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Length: 45 pages
Date of creation: 16 Nov 2011
Date of revision:
Handle: RePEc:kud:kuiedp:1130

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Keywords: social insurance; adaptation; role models;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Why the young demand more social insurance than older generations
    by Economic Logician in Economic Logic on 2011-12-28 14:50:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Algan, Yann & Cahuc, Pierre & Sangnier, Marc, 2014. "Trust and the Welfare State: The Twin Peaks Curve," IZA Discussion Papers 8277, Institute for the Study of Labor (IZA).
  2. Martin Ljunge, 2011. "Sick of Taxes? Evidence on the Elasticity of Labor Supply when Workers Are Free to Choose," Discussion Papers, University of Copenhagen. Department of Economics 11-27, University of Copenhagen. Department of Economics.
  3. Ljunge, Martin, 2013. "Social Capital and the Family: Evidence that Strong Family Ties Cultivate Civic Virtues," Working Paper Series, Research Institute of Industrial Economics 967, Research Institute of Industrial Economics.
  4. Lucifora, Claudio & Meurs, Dominique, 2012. "Family Values, Social Needs and Preferences for Welfare," IZA Discussion Papers 6977, Institute for the Study of Labor (IZA).
  5. Giacomo Corneo & Frank Neher, 2014. "Income inequality and self-reported values," Journal of Economic Inequality, Springer, Springer, vol. 12(1), pages 49-71, March.
  6. Martin Ljunge, 2012. "Family Ties and Civic Virtues: Evidence on Wilson's "Moral Sense"," Discussion Papers, University of Copenhagen. Department of Economics 12-07, University of Copenhagen. Department of Economics.

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