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

Nils Braakmann

No 161, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

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.

Keywords: disability, labor supply, subjective well-being, adaption; other-regarding preferences (search for similar items in EconPapers)
JEL-codes: D64 I10 J14 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-01
New Economics Papers: this item is included in nep-hea and nep-lab
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Journal Article: The consequences of own and spousal disability on labor market outcomes and subjective well-being: evidence from Germany (2014)
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