Family Labor Supply Responses to Severe Health Shocks: Evidence from Danish Administrative Records
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Family Labor Supply Responses to Severe Health Shocks: Evidence from Danish Administrative Records. / Fadlon, Itzik; Nielsen, Torben Heien.
In: American Economic Journal: Applied Economics, Vol. 13, No. 3, 2021, p. 1-30.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Family Labor Supply Responses to Severe Health Shocks: Evidence from Danish Administrative Records
AU - Fadlon, Itzik
AU - Nielsen, Torben Heien
PY - 2021
Y1 - 2021
N2 - 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.
AB - 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.
U2 - 10.1257/app.20170604
DO - 10.1257/app.20170604
M3 - Journal article
VL - 13
SP - 1
EP - 30
JO - American Economic Journal: Applied Economics
JF - American Economic Journal: Applied Economics
SN - 1945-7782
IS - 3
ER -
ID: 288781227