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Disability Retirement in a Welfare State

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  • Bratberg, Espen

Abstract

The increasing number of disability pensioners may put a strain on the welfare state. In this paper, the authors try to assess the effect of financial incentives on disability entrance. A sample of Norwegians on long-term sick leave at the beginning of 1989 is examined as of the end of 1989, and the exit routes are studied in a multinomial logit model. The results indicate that the incentive effects of wages are larger than the disincentive effects of benefits. Furthermore, there is no evidence that having a 'subjective' diagnosis affects the probability of becoming a disability pensioner. Copyright 1999 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 101 (1999)
Issue (Month): 1 (March)
Pages: 97-114

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Handle: RePEc:bla:scandj:v:101:y:1999:i:1:p:97-114

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Cited by:
  1. Holen , Dag S., 2007. "Disabillity Pension Motivated Income Adjustment," Memorandum 17/2008, Oslo University, Department of Economics.
  2. Peter Haan & Michal Myck, 2009. "Dynamics of Poor Health and Non-employment," SOEPpapers on Multidisciplinary Panel Data Research 195, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute for the Study of Labor (IZA).
  4. Kostol, Andreas Ravndal & Mogstad, Magne, 2012. "How Financial Incentives Induce Disability Insurance Recipients to Return to Work," IZA Discussion Papers 6702, Institute for the Study of Labor (IZA).
  5. Haan, Peter & Myck, Michal, 2009. "Dynamics of health and labor market risks," Journal of Health Economics, Elsevier, vol. 28(6), pages 1116-1125, December.
  6. Gordon B. Dahl & Andreas Ravndal Kostol & Magne Mogstad, 2013. "Family Welfare Cultures," NBER Working Papers 19237, National Bureau of Economic Research, Inc.
  7. Iskhakov, Fedor, 2008. "Pension Reforms in Norway: Evidence from a Structural Dynamic Model," Memorandum 14/2008, Oslo University, Department of Economics.
  8. Hanel, Barbara, 2012. "The effect of disability pension incentives on early retirement decisions," Labour Economics, Elsevier, vol. 19(4), pages 595-607.
  9. Guðmundur Guðmundsson, 2000. "Prospects of Icelandic pension funds," Economics wp06, Department of Economics, Central bank of Iceland.
  10. Barbara Hanel, 2010. "Disability Pensions and Labor Supply," Working Papers 086, Bavarian Graduate Program in Economics (BGPE).
  11. Iskhakov, Fedor, 2008. "Dynamic Programming Model of Health and Retirement," Memorandum 03/2008, Oslo University, Department of Economics.
  12. Holen, Dag S., 2007. "It Ain't Necessariy So," Memorandum 19/2008, Oslo University, Department of Economics.
  13. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.

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