Insured by the partner?

Martin Olsson and Peter Skogman Thoursie ()

No 2010:3, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

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.

Keywords: Spousal labor supply; spill-over; social insurance programs (search for similar items in EconPapers)
JEL-codes: H31 J22 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2010-03-05
New Economics Papers: this item is included in nep-ias
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Published as Olsson, Martin and Peter Skogman Thoursie, 'Sickness insurance and spousal labour supply' in Labour Economics, 2015, pages 41-54.

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