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How disability insurance reforms change the consequences of health shocks on income and employment

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  • Hullegie, Patrick
  • Koning, Pierre

Abstract

This paper examines whether Dutch disability insurance reforms have helped or hindered employment opportunities of workers that are facing unanticipated shocks to their health. An important component of the reforms was to make employers responsible for paying sickness benefits and to strengthen their sickness monitoring obligations. This may stimulate preventive and reintegration activities by firms. Using administrative data on hospitalizations, we conclude that both financial incentives and monitoring obligations have substantially lowered DI receipt and increased the employment of workers after a health shock.

Suggested Citation

  • Hullegie, Patrick & Koning, Pierre, 2018. "How disability insurance reforms change the consequences of health shocks on income and employment," Journal of Health Economics, Elsevier, vol. 62(C), pages 134-146.
    • Handle: RePEc:eee:jhecon:v:62:y:2018:i:c:p:134-146
    DOI: 10.1016/j.jhealeco.2018.09.004
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    References listed on IDEAS

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    Cited by:

    1. Koning, Pierre & Muller, Paul & Prudon, Roger, 2022. "Why Do Temporary Workers Have Higher Disability Insurance Risks Than Permanent Workers?," IZA Discussion Papers 15173, Institute of Labor Economics (IZA).
    2. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    3. Tunga Kantarcı & Jan‐Maarten van Sonsbeek & Yi Zhang, 2023. "The heterogeneous impact of stricter criteria for disability insurance," Health Economics, John Wiley & Sons, Ltd., vol. 32(9), pages 1898-1920, September.
    4. Agar Brugiavini & Petru Crudu, 2023. "The Role of Disability Insurance on the Labour Market Trajectories of Europeans," Working Papers 2023:20, Department of Economics, University of Venice "Ca' Foscari".

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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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