Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

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

Martin Olsson () and Peter Skogman Thoursie ()
Additional contact information
Martin Olsson: Research Institute of Industrial Economics (IFN), Postal: and Department of Economics, Stockholm University
Peter Skogman Thoursie: Department of Economics, Postal: Stockholm University and IFAU

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

JEL-codes: D10; J13; J22

7 pages, June 22, 2011

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