Family Labor Supply Responses to Severe Health Shocks: Evidence from Danish Administrative Records

• 成果类型: Article
• 署名作者: Fadlon, Itzik; Nielsen, Torben Heien
• 署名单位: University of California System; University of California San Diego; National Bureau of Economic Research; University of Copenhagen
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20170604
• 发表日期: 2021
• 页码: 1-30
• 关键词: husbands health; long-term; disability; insurance; EMPLOYMENT; earnings; work; care; CONSEQUENCES; unemployment

摘要

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.