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Research Institute of Industrial Economics (IFN) Working Paper Series

No 875:
Are Married Spouses Insured by their Partnersí Social Insurance?

Martin Olsson () and Peter Skogman Thoursie ()

Abstract: We use a Swedish sickness insurance reform to show that among married couples a partnerís benefit level affects spousal labour supply. The spousal elasticity of sick days with respect to the partnerís 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.

Keywords: Spousal labor supply; Spill-over; Social insurance programs; (follow links to similar papers)

JEL-Codes: D10; J13; J22; (follow links to similar papers)

7 pages, June 22, 2011

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