An Indirect Test of Complementarity in a Family Labor Supply Model

Econometrica ◽  
1976 ◽  
Vol 44 (4) ◽  
pp. 651 ◽  
Author(s):  
Thomas J. Kniesner
2015 ◽  
Author(s):  
Itzik Fadlon ◽  
Torben Heien Nielsen

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)


Econometrica ◽  
2019 ◽  
Vol 87 (1) ◽  
pp. 291-326 ◽  
Author(s):  
George-Levi Gayle ◽  
Andrew Shephard

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