@TechReport{iza:izadps:dp6446, author={Markussen, Simen and Røed, Knut}, title={Social Insurance Networks}, year={2012}, month={Mar}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={6446}, url={https://www.iza.org/publications/dp6446}, abstract={Based on administrative panel data from Norway, we examine how social insurance dependency spreads within neighborhoods, families, ethnic minorities, and among former schoolmates. We use a fixed effects methodology that accounts for endogenous group formation, contextual interactions, and time-constant as well as time-varying confounders. We report evidence that social insurance dependency is contagious. The estimated network effects are both quantitatively and statistically significant, and they rise rapidly with "relational closeness" in a way that establishes endogenous social interaction as a central causal mechanism. Social interactions do not cross ethnic borders.}, keywords={peer effects;social interaction;social multiplier;work norms}, }