2006–2010

Raising Children to Work Hard: Altruism, Work Norms and Social Insurance

Reprint No. 2006:28

Author(s): Assar Lindbeck and Sten NybergYear: 2006 Title: Quarterly Journal of Economics Volume (No.): 121 (4) Pages: 1473–1503


Empirically, disincentive effects on work of generous welfare state arrangements tend to appear with a substantial time lag. One explanation is that norms concerning work and benefit dependency delay such effects. We model altruistic parents' economic incentives for instilling such work norms in their children. Anticipated economic support from parents may reduce work effort, and parental altruism makes threats to withdraw such support noncredible. Instilling norms mitigates this problem. However, generous social insurance arrangements tend to weaken parents' incentives to instill such norms in their children. We find empirical support for this prediction.


Reference:
Lindbeck, Assar and Sten Nyberg (2006), "Raising Children to Work Hard: Altruism, Work Norms and Social Insurance". Quarterly Journal of Economics 121(4), 1473–1503.

Assar Lindbeck

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assar.lindbeck@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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