Do disability benefits hinder work resumption after recovery?

Autor: Paul Muller, Roger Prudon, Pierre Koning
Přispěvatelé: Economics, Tinbergen Institute
Jazyk: angličtina
Rok vydání: 2022
Předmět:
Zdroj: Koning, P, Muller, P & Prudon, R 2022, ' Do disability benefits hinder work resumption after recovery? ', Journal of Health Economics, vol. 82, 102593, pp. 1-23 . https://doi.org/10.1016/j.jhealeco.2022.102593
Vrije Universiteit Amsterdam
Journal of Health Economics, 82:102593, 1-23. Elsevier
ISSN: 0167-6296
DOI: 10.1016/j.jhealeco.2022.102593
Popis: While a large share of Disability Insurance recipients in OECD countries are expected to recover, outflow rates from temporary disability schemes are typically negligible. We estimate the disincentive effects of disability benefits on the response to a (mental) health improvement using administrative data on all Dutch disability benefit applicants. We compare those below the DI eligibility threshold with those above and find that disincentives significantly reduce work resumption after health improves. Approximately half of the response to recovery is offset by benefits. Estimates from a structural labor supply model suggest that disincentives are substantially larger when the worker's earnings capacity is fully restored.
Databáze: OpenAIRE