Abstract:
We use a Swedish sickness insurance reform to show that among married couples a partner’s benefit level affects spousal labour supply. The spousal elasticity of sick days with respect to the partner’s benefit is estimated to be 0.4, which is about one-fourth of the own labor supply elasticity. It is argued the main part of this effect is an insurance income effect.
More papers in Working Paper Series from Research Institute of Industrial Economics Address: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden Contact information at EDIRC. Series data maintained by Elisabeth Gustafsson ().