Social Insurance Networks
Link to article:
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 forskningsrådOppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway