The Spirit of the Welfare State? Adaptation in the Demand for Social Insurance
Research output: Working paper › Research
Young generations demand substantially more social insurance than older generations, although program rules have been constant for decades. I postulate a model where the utility of taking up social insurance benefits depends on the past behavior of older generations. The model is estimated with individual panel data. The intertemporal mechanism estimated can account for half of the younger generations’ higher demand for social insurance benefits. The influence of older generations’ behavior remains when instrumenting using mortality rates, which makes a compelling case for a causal intertemporal influence on individual demand.
Original language | English |
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Place of Publication | Kbh. |
Publisher | Department of Economics, University of Copenhagen |
Number of pages | 46 |
Publication status | Published - Apr 2011 |
Series | University of Copenhagen. Institute of Economics. Discussion Papers (Online) |
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Number | 30 |
Volume | 2011 |
ISSN | 1601-2461 |
ID: 35967452