TY - RPRT AU - Markussen, Simen AU - Røed, Knut TI - Social Insurance Networks PY - 2012/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 6446 UR - https://www.iza.org/publications/dp6446 AB - 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. KW - peer effects KW - social interaction KW - social multiplier KW - work norms ER -