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The consequences of own and spousal disability on labor market outcomes and subjective well-being: Evidence from Germany

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  • Nils Braakmann

    (Institute of Economics, Leuphana University of Lüneburg, Germany)

Abstract

In 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.

Suggested Citation

  • Nils Braakmann, 2010. "The consequences of own and spousal disability on labor market outcomes and subjective well-being: Evidence from Germany," Working Paper Series in Economics 161, University of Lüneburg, Institute of Economics.
  • Handle: RePEc:lue:wpaper:161
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    Cited by:

    1. Riekhoff, Aart-Jan & Vaalavuo, Maria, 2021. "Health shocks and couples’ labor market participation: A turning point or stuck in the trajectory?," Social Science & Medicine, Elsevier, vol. 276(C).
    2. Nicholas A. Jolly & Nikolaos Theodoropoulos, 2023. "Health shocks and spousal labor supply: an international perspective," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 973-1004, April.
    3. Aitor Calo-Blanco, 2022. "Fairness and unequal productive skills among other-regarding individuals," Working Papers 22.06, Universidad Pablo de Olavide, Department of Economics.
    4. Anand, Priyanka & Dague, Laura & Wagner, Kathryn L., 2022. "The role of paid family leave in labor supply responses to a spouse's disability or health shock," Journal of Health Economics, Elsevier, vol. 83(C).
    5. Chiara Mussida & Dario Sciulli, 2022. "Disability and Material Deprivation: A Profile of Disadvantage in Italy," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 130(2), pages 169-190.
    6. Aitor Calo-Blanco, 2017. "Health and fairness with other-regarding preferences," Working Papers 17.04, Universidad Pablo de Olavide, Department of Economics.
    7. Aitor Calo-Blanco, 2020. "Health and fairness with other-regarding preferences," Review of Economic Design, Springer;Society for Economic Design, vol. 24(3), pages 123-141, December.
    8. Zhao, Yuejun, 2023. "Job displacement and the mental health of households: Burden sharing counteracts spillover," Labour Economics, Elsevier, vol. 81(C).
    9. Chiara Mussida & Dario Sciulli, 2019. "Does the Presence of a Disabled Person in the Household Affect the Employment Probabilities of Cohabiting Women? Evidence from Italy, France and the UK," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 338-351, September.
    10. Chiara Mussida & Raffaella Patimo, 2021. "Women’s Family Care Responsibilities, Employment and Health: A Tale of Two Countries," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 489-507, September.
    11. De Gruyter, Elaine & Petrie, Dennis & Black, Nicole, 2023. "Household donations of time and money in response to a health shock," Social Science & Medicine, Elsevier, vol. 333(C).

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    More about this item

    Keywords

    disability; labor supply; subjective well-being; adaption; other-regarding preferences;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • 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

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