Social Insurance Networks
Link to article:
Authors:
Markusen, Simen og Knut Røed
Year:
2015
Reference:
The Journal of Human Resources
Vol 50(4), 1081-1113Summary
Based on administrative panel data from Norway, we examine how social insurance claims spread among neighbors and former schoolmates. We use a fixed effects methodology that accounts for endogenous group formation, contextual interactions generated by predetermined social factors, and time-constant as well as time-varying confounders. We report evidence that social insurance claims are contagious. There are significant local peer effects both in the overall use of social insurance and in the propensity to use one particular social insurance program rather than another. The magnitudes of the estimated peer effects rise consistently with measures of geographical and relational closeness.
JEL:
C31, H55, I38
Keywords:
social interaction, social multiplier, work norms, peer effects
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway
