We invite you to a FAIR Seminar with Nadja Dwenger. Dwenger is full professor of Economics at the University of Hohenheim, where she holds the Chair of Public Economics. She is also an affiliated researcher at the Chr. Michelsen Institute Bergen as well as a CEPR affiliate and a CESifo fellow. Her research investigates the economic impact of government policy.
Title: “Survivor Benefits, Self-Insurance, and Gender Inequality: Evidence from Sweden” (joint work with Johannes Kochems, Martin Nybom, Sebastian Siegloch)
Abstract: We analyze the causal effects of survivor benefits on women's labor and capital market decisions. We exploit a cohort-based reform in Sweden in 1990 that sharply reduced survivor benefits. To estimate how women compensate for a loss of public insurance, we apply regression discontinuity and differences-in-differences designs to estimate the reform-effects on labor supply, earnings, and wealth accumulation. We find no evidence of labor supply adjustments in anticipation of lower survivor benefits while partners are still alive. However, affected women postpone retirement and accumulate significantly more net wealth. Yet, these adjustments are insufficient to fully offset the benefit loss. After an early and unexpected partner death, women substantially increase employment and earnings which is consistent with imperfect foresight.