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Social Insurance Networks

Link to article:

[PDF]

Authors:

Markussen, Simen og Knut Røed

Year:

2012

Reference:

Andre skrifter
IZA Discussion paper no 6446

Summary

Based on administrative panel data from Norway, we examine how social insurance dependency spreads within neighborhoods, families, ethnic minorities, and among former schoolmates. We use a fixed effects methodology that accounts for endogenous group formation, contextual interactions, and time-constant as well as time-varying confounders. We report evidence that social insurance dependency is contagious. The estimated network effects are both quantitatively and statistically significant, and they rise rapidly with “relational closeness” in a way that establishes endogenous social interaction as a central causal mechanism. Social interactions do not cross ethnic borders.

JEL:

C31, H55, I38

Keywords:

social interaction, social multiplier, work norms, peer effects

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway