scholarly journals Spousal Labor Supply Responses to Government Programs: Evidence from the Disability Insurance Program

Author(s):  
Susan Elizabeth Chen
2021 ◽  
Vol 13 (3) ◽  
pp. 1-30
Author(s):  
Itzik Fadlon ◽  
Torben Heien Nielsen

We provide new evidence on households’ labor supply responses to fatal and severe nonfatal health shocks in the short run and medium run. To identify causal effects, we leverage administrative data on Danish families and construct counterfactuals using households that experience the same event a few years apart. Fatal events lead to considerable increases in surviving spouses’ labor supply, which the evidence suggests is driven by families who experience significant income losses. Nonfatal shocks have no meaningful effects on spousal labor supply, consistent with their adequate insurance coverage. The results support self-insurance as a driving mechanism for the family labor supply responses. (JEL D12, D15, G22, I12, J22)


2014 ◽  
Vol 14 (3) ◽  
pp. 873-891 ◽  
Author(s):  
Per Johansson ◽  
Lisa Laun ◽  
Tobias Laun

Abstract We propose a strategy for assessing how the inflow to the disability insurance program has been governed over time. Using ex-post mortality, we analyze the ex-ante health of individuals entering the program, compared to individuals not entering the program in the same year. Applying this strategy to Sweden, we find large variation in the relative health of new beneficiaries compared to non-beneficiaries over time. Some of the fluctuations correspond well to formal changes to screening stringency. However, we also find large variation in health during periods when no changes to formal eligibility criteria have been pursued.


2015 ◽  
Vol 105 (5) ◽  
pp. 137-141 ◽  
Author(s):  
Andreas Ravndal Kostøl ◽  
Magne Mogstad

Two key questions in thinking about the size and growth of the disability insurance program are to what extent it discourages work, and how valuable the insurance is to individuals and families. These questions motivate our paper. We begin by describing the earnings, disposable income, and consumption of awarded and rejected DI applicants, before and after the disability onset and the allowance decision. Next, we discuss how these descriptive results can be interpreted through the lens of alternative empirical approaches. Our analysis uses a Norwegian population panel data set with detailed information about every individual and household.


1939 ◽  
Vol 6 (4) ◽  
pp. 645
Author(s):  
I. S. Falk ◽  
L. S. Reed ◽  
B. S. Sanders

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