Data and Code For: Spousal Labor Supply, Caregiving, and the Value of Disability Insurance

This project evaluates the insurance value of the Social Security Disability Insurance (SSDI) program among married households when wives face a trade-off between market hours and spousal care following their husbands' disability. Event study analyses show that wives' labor supply responses to their husbands' disability are small, and instead, a considerable amount of time is spent in spousal care. Using a dynamic structural model, I find that incorporating time loss due to spousal care increases the insurance value of SSDI relative to its costs. In addition, budget-neutral policy reforms that subsidize the cost of care can improve social welfare.