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Norwegian

Social Insurance Networks

Link to article:

[DOI] [PDF]

Authors:

Markusen, Simen og Knut Røed

Year:

2015

Reference:

Journal of Human Resources

Vol 50(4), 1081-1113

Summary

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.

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