Social Insurance Networks

Simen Markussen and Knut Røed ()

No 6446, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Based on administrative panel data from Norway, we examine how social insurance dependency spreads within neighborhoods, families, ethnic minorities, and among former schoolmates. We use a fixed effects methodology that accounts for endogenous group formation, contextual interactions, and time-constant as well as time-varying confounders. We report evidence that social insurance dependency is contagious. The estimated network effects are both quantitatively and statistically significant, and they rise rapidly with "relational closeness" in a way that establishes endogenous social interaction as a central causal mechanism. Social interactions do not cross ethnic borders.

Keywords: peer effects; social interaction; social multiplier; work norms (search for similar items in EconPapers)
JEL-codes: C31 H55 I38 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2012-03
New Economics Papers: this item is included in nep-ias, nep-net, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - revised version published in: Journal of Human Resources, 2015, 50(4), 1081-1113

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Journal Article: Social Insurance Networks (2015)
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