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Insured by the partner?

Author

Listed:
  • Olsson, Martin

    (Stockholm University, Department of Economics)

  • Skogman Thoursie, Peter

    (IFAU - Institute for Labour Market Policy Evaluation)

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.

Suggested Citation

  • Olsson, Martin & Skogman Thoursie, Peter, 2010. "Insured by the partner?," Working Paper Series 2010:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2010_003
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Spousal labor supply; spill-over; social insurance programs;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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