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Social Insurance Networks

Author

Listed:
  • Simen Markussen
  • Knut Røed

Abstract

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.

Suggested Citation

  • Simen Markussen & Knut Røed, 2015. "Social Insurance Networks," Journal of Human Resources, University of Wisconsin Press, vol. 50(4), pages 1081-1113.
    • Handle: RePEc:uwp:jhriss:v:50:y:2015:i:4:p:1081-1113
    Note: DOI: 10.3368/jhr.50.4.1081
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    Cited by:

    1. Rieck, Karsten Marshall Elseth & Vaage, Kjell, 2012. "Social Interactions At The Workplace: Exploring Sickness Absence Behavior," Working Papers in Economics 11/12, University of Bergen, Department of Economics.
    2. Mittag, Nikolas, 2016. "A Simple Method to Estimate Large Fixed Effects Models Applied to Wage Determinants and Matching," IZA Discussion Papers 10447, Institute of Labor Economics (IZA).
    3. Gerald J. Pruckner & Thomas Schober & Katrin Zocher, 2020. "The company you keep: health behavior among work peers," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(2), pages 251-259, March.
    4. Janna Bergsvik, 2019. "Linking neighbors’ fertility. Third births in Norwegian neighborhoods," Discussion Papers 898, Statistics Norway, Research Department.
    5. Schreiner, Ragnhild C., 2019. "Unemployed or Disabled? Disability Screening and Labor Market Outcomes of Youths," Memorandum 5/2019, Oslo University, Department of Economics.
    6. Alpino, Matteo & Hauge, Karen Evelyn & Kotsadam, Andreas & Markussen, Simen, 2022. "Effects of dialogue meetings on sickness absence—Evidence from a large field experiment," Journal of Health Economics, Elsevier, vol. 83(C).
    7. Markussen, Simen & Røed, Knut, 2017. "Egalitarianism under Pressure: Toward Lower Economic Mobility in the Knowledge Economy?," IZA Discussion Papers 10664, Institute of Labor Economics (IZA).
    8. Grossman, Daniel & Khalil, Umair, 2020. "Neighborhood networks and program participation," Journal of Health Economics, Elsevier, vol. 70(C).
    9. Godøy, Anna & Dale-Olsen, Harald, 2018. "Spillovers from gatekeeping – Peer effects in absenteeism," Journal of Public Economics, Elsevier, vol. 167(C), pages 190-204.
    10. Gary W. Cox & Jon H. Fiva & Max-Emil M. King, 2023. "Bound by Borders: Voter Mobilization through Social Networks," CESifo Working Paper Series 10718, CESifo.
    11. De Brouwer, Octave & Tojerow, Ilan, 2023. "The Growth of Disability Insurance in Belgium: Determinants and Policy Implications," IZA Discussion Papers 16376, Institute of Labor Economics (IZA).
    12. Stark, Oded & LaFave, Daniel, 2024. "On the Role of Social Comparisons in Shaping Migrants’ Remittance Behavior: Theory, and Evidence from China," EconStor Open Access Book Chapters, in: World Scientific Handbook of Global Migration, Volume 2: Global Migration: Alternative Views and Social Comparisons, pages 53-82, ZBW - Leibniz Information Centre for Economics.
    13. Gaure, Simen, 2013. "OLS with multiple high dimensional category variables," Computational Statistics & Data Analysis, Elsevier, vol. 66(C), pages 8-18.
    14. Knut Røed, 2012. "Active social insurance," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-22, December.
    15. Markussen, Simen & Røed, Knut, 2017. "The gender gap in entrepreneurship – The role of peer effects," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 356-373.
    16. Markussen, Simen & Røed, Knut, 2016. "Gendered Entrepreneurship Networks," IZA Discussion Papers 9984, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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