The consequences of own and spousal disability on labor market outcomes and subjective well-being: Evidence from Germany
AbstractIn 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.
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Bibliographic InfoPaper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 161.
Length: 34 pages
Date of creation: Jan 2010
Date of revision:
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disability; labor supply; subjective well-being; adaption; other-regarding preferences;
Find related papers by JEL classification:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- I10 - Health, Education, and Welfare - - Health - - - General
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-30 (All new papers)
- NEP-HEA-2010-01-30 (Health Economics)
- NEP-LAB-2010-01-30 (Labour Economics)
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