Skip to main content
×
Home
    • Aa
    • Aa

Dependency Status and Demand for Social Insurance: Evidence from Experiments and Surveys*

Abstract

Current thinking on the origins and size of the welfare state often ignores household relations in which people may depend on others for income or have dependents themselves. The influence of “dependency status” on individuals’ political preferences is unknown. We report results from a laboratory experiment designed to estimate the effect of dependency on preferences for policies that insure against labor market risk. Results indicate that (1) willingness to vote in favor of a social insurance policy is highly responsive to unemployment risk, (2) symmetric, mutual dependence is unrelated to support for insurance, but (3) asymmetric dependence (being dependent on someone else) increases support for social insurance. We connect our lab results to observational survey data and find similar relationships.

Copyright
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Mohammed Abdellaoui , Olivier I’Haridon , and Corina Paraschiv . 2013. ‘Individual vs. Couple Behavior: An Experimental Investigation of Risk Preferences’. Theory and Decision 75(2):175191.

Ingvild Almås , Alexander W. Cappelen , Erik Sorensen , and Bertil Tungodden . 2010. ‘Fairness and the Development of Inequality Acceptance’. Science 328(5982):11761178.

Dan R. Anderson , and John R. Nevin . 1975. ‘Determinants of Young Marrieds’ Life Insurance Purchasing Behavior: An Empirical Investigation’. The Journal of Risk and Insurance 42(3):375387.

Nava. Ashraf 2009. ‘Spousal Control and Intra-Household Decision Making: An Experimental Study in the Philippines’. The American Economic Review 99(4):12451277.

Richard P Bagozzi . 2012. ‘Alternative Approaches for Thinking About and Modeling Consumer Decisions in Relationships’. Journal of Consumer Psychology 22(3):315319.

Benjamin Barber , Pablo Beramendi , and Erik Wibbels . 2013. ‘The Behavioral Foundations of Social Politics: Evidence from Surveys and a Laboratory Experiment’. Comparative Political Studies 46(10):11551189.

Ian Bateman , and Alistair Munro . 2005. ‘An Experiment on Risky Choice Amongst Households’. The Economic Journal 115(502):C176C189.

Don Bellante , and Carole A. Green . 2004. ‘Relative Risk Aversion Among the Elderly’. Review of Financial Economics 13:269281.

Michele Belot , Raymond Duch , and Luis Miller . 2015. ‘A Comprehensive Comparison of Students and Non-Students in Classic Experimental Games’. Journal of Economic Behavior & Organization 113:2633.

Gary E. Bolton , and Axel Ockenfels . 2000. ‘Erc: A Theory of Equity, Reciprocity, and Competition’. The American Economic Review 90(1):166193.

Barry C Burden . 2008. ‘The Social Roots of the Partisan Gender Gap’. Public Opinion Quarterly 72(1):5575.

Antonio Cabrales , Rosemarie Nagel , and Jos V. RodrguezMora . 2012. ‘It is Hobbes, Not Rousseau: An Experiment on Voting and Redistribution’. Experimental Economics 15(2):278308.

Fredrik Carlsson , Peter Martinsson , Ping Qin , and Matthias Sutter . 2013. ‘The Influence of Spouses on Household Decision Making Under Risk: An Experiment in Rural China’. Experimental Economics 16(3):383401.

Gary Charness , and Matthew Rabin . 2002. ‘Understanding Social Preferences with Simple Tests’. The Quarterly Journal of Economics 117(3):817869.

Yan Chen , and Sherry X. Li . 2009. ‘Group Identity and Social Preferences’. The American Economic Review 99(1):431457.

Andre de Palma , Nathalie Picard , and Anthony Ziegelmeyer . 2011. ‘Individual and Couple Decision Behavior Under Risk: Evidence on the Dynamics of Power Balance’. Theory and Decision 70(1):4564.

Lena Edlund , and Rohini Pande . 2002. ‘Why Have Women Become Left-Wing? The Political Gender Gap and the Decline in Marriage’. The Quarterly Journal of Economics 117(3):917961.

Justin Esarey , Timothy C. Salmon , and Charles Barrilleaux . 2011a. ‘Social Insurance and Income Redistribution in a Laboratory Experiment’. Political Research Quarterly 65(3):685698.

Armin Falk , and Urs Fischbacher . 2006. ‘A Theory of Reciprocity’. Games and Economic Behavior 54(2):293315.

Ernst Fehr , and Klaus M. Schmidt . 1999. ‘A Theory of Fairness, Competition, and Cooperation’. The Quarterly Journal of Economics 114(3):817868.

Robert Ferber , and Lucy C. Lee . 1980. ‘Acquisition and Accumulation of Life Insurance in Early Married Life’. The Journal of Risk and Insurance 47(4):713734.

Henning Finseraas , Niklas Jakobsson , and Andreas Kotsadam . 2012. ‘The Gender Gap in Political Preferences: An Empirical Test of a Political Economy Explanation’. Social Politics: International Studies in Gender, State & Society 19(2):219242.

Urs. Fischbacher 2007. ‘Z-Tree: Zurich Toolbox for Ready-Made Economic Experiments’. Experimental Economics 10(2):171178.

Bernard Fortin , and Guy Lacroix . 1997. ‘A Test of the Unitary and Collective Models of Houselhold Labour Supply’. The Economic Journal 107(443):933955.

David Gill , and Victoria Prowse . 2012. ‘A Structural Analysis of Disappointment Aversion in a Real Effort Competition’. American Economic Review 102(1):469503.

Art. Goldsmith 1983. ‘Household Life Cycle Protection: Human Capital Versus Life Insurance’. The Journal of Risk and Insurance 50(3):473486.

Margarita Gorlin , and Ravi Dhar . 2012. ‘Bridging the Gap Between Joint and Individual Decisions: Deconstructing Preferences in Relationships’. Journal of Consumer Psychology 22(3):320323.

Peter Hall , and David Soskice. (eds). 2001. Varieties of Capitalism. Oxford: Oxford University Press.

Rebecca W. Hamilton , and Gabriel J. Biehal . 2005. ‘Achieving Your Goals or Protecting Their Future? The Effects of Self? View on Goals and Choices’. Journal of Consumer Research 32(2):277283.

Tory. Higgins 1998. ‘Promotion and Prevention: Regulatory Focus as a Motivational Principle’. In Mark P. Zanna (ed.), Advances in Experimental Social Psychology. 146. Princeton, NJ: Academic Press.

JoAnne S Hopper . 1995. ‘Family Financial Decision Making: Implications for Marketing Strategy’. Journal of Services Marketing 9(1):2432.

Torben Iversen , and Frances Rosenbluth . 2010. Women, Work, and Politics. New Haven, CT: Yale University Press.

Esteban F. Klor , and Moses Shayo . 2010. ‘Social Identity and Preferences Over Redistribution’. Journal of Public Economics 94(34):269278.

Angela Lee , Jennifer Aaker , and Wendi Gardner . 2000. ‘The Pleasures and Pains of Distinct Self-Construals: The Role of Interdependence in Regulatory Focus’. Journal of Personality and Social Psychology 78(6):11221134.

Shelly Lundberg , and Robert A. Pollak . 1996. ‘Bargaining and Distribution in Marriage’. The Journal of Economic Perspectives 10(4):139158.

Shelly J. Lundberg , Robert A. Pollak , and Terence J. Wales . 1997. ‘Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit’. The Journal of Human Resources 32(3):463480.

Naomi Mandel . 2003. ‘Shifting Selves and Decision Making: The Effects of Self-Construal Priming on Consumer Risk-Taking’. Journal of Consumer Research 30(1):3040.

Jerry Nickelsburg , and Jeffrey F. Timmons . 2012. ‘On the (Ir)relevance of Skill Specificity for Social Insurance’. Quarterly Journal of Political Science 7:3567.

Philip Rehm . 2009. ‘Risks and Redistribution: An Individual-Level Analysis’. Comparative Political Studies 42(7):855881.

Kenneth Scheve , and David Stasavage . 2006. ‘Religion and Preferences for Social Insurance’. Quarterly Journal of Political Science 1:255286.

Jeffry A. Simpson , Vladas Griskevicius , and Alexander J. Rothman . 2012. ‘Consumer Decisions in Relationships’. Journal of Consumer Psychology 22(3):304314.

Rongrong Zhou , and Michel T. Pham . 2004. ‘Promotion and Prevention Across Mental Accounts: When Financial Products Dictate Consumers Investment Goals’. Journal of Consumer Research 31(1):125135.

Emily Norman Zietz . 2003. ‘An Examination of the Demand for Life Insurance’. Risk Management and Insurance Review 6(2):159191.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Political Science Research and Methods
  • ISSN: 2049-8470
  • EISSN: 2049-8489
  • URL: /core/journals/political-science-research-and-methods
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×
Type Description Title
PDF
Supplementary Materials

Ahlquist supplementary material
Online Appendix

 PDF (227 KB)
227 KB

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 78
Total number of PDF views: 159 *
Loading metrics...

Abstract views

Total abstract views: 572 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 20th August 2017. This data will be updated every 24 hours.