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IFAU - Institute for Evaluation of Labour Market and Education Policy Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2010:3:
Insured by the partner?

Martin Olsson () and Peter Skogman Thoursie ()

Abstract: This paper investigates whether the partnerís 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 partnerís benefit is estimated to 0.4. Additional analysis indicates that the partnerís 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; (follow links to similar papers)

JEL-Codes: H31; J22; (follow links to similar papers)

24 pages, March 5, 2010

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This paper is published as:
Olsson, Martin and Peter Skogman Thoursie, (2015), 'Sickness insurance and spousal labour supply', Labour Economics, Vol. 33, April, pages 41-54



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