Hidden Unemployment in Disability Insurance
AbstractWe estimate the fraction of hidden unemployment in the disability insurance (DI) inflow rate on the basis of a longitudinal administrative data set of Dutch employers for the period 1994-2003. This fraction can be identified by imposing so-called exclusion restrictions on variables that are thought to impact the layoff rate but not disability risk. We find that the fraction of hidden unemployment in DI inflow amounts to 11 per cent. This implies that 2.6 per cent of all layoffs took place via the DI scheme. In addition, we find that this share has declined substantially over time, suggesting that various policy measures taken have been effective. Copyright 2007 The Authors. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2007.
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Bibliographic InfoArticle provided by CEIS in its journal LABOUR.
Volume (Year): 21 (2007)
Issue (Month): 4-5 (December)
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- Euwals, Rob & van Vuren, Annemiek & van Vuuren, Daniel, 2011. "The Decline of Early Retirement Pathways in the Netherlands: An Empirical Analysis for the Health Care Sector," IZA Discussion Papers 5810, Institute for the Study of Labor (IZA).
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- Pierre Koning, 2009. "Experience Rating and the Inflow into Disability Insurance," De Economist, Springer, vol. 157(3), pages 315-335, September.
- Gerards, Ruud, 2012. "Unemployment and employability: how firms can help," Open Access publications from Maastricht University urn:nbn:nl:ui:27-29158, Maastricht University.
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