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Financial Incentives in Disability Insurance in the Netherlands

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  • Annemiek Vuren

    ()

  • Daniel Vuuren

Abstract

In this paper, we assess the impact of financial incentives on the inflow in the public Disability Insurance (DI) scheme in the Netherlands. For this matter, the variation in replacement rates over different sectors is exploited to estimate the probability of DI enrolment over a sample of employees from the Dutch Income Panel (1996-2000). On the basis of these administrative data, we find a point estimate of the elasticity of DI enrolment with respect to the DI wealth rate of 2.5.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s10645-006-9042-x
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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 155 (2007)
Issue (Month): 1 (March)
Pages: 73-98

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Handle: RePEc:kap:decono:v:155:y:2007:i:1:p:73-98

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Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: disability insurance; financial incentives; moral hazard;

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References

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  1. J. S. Cramer, 2004. "Scoring bank loans that may go wrong: a case study," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 58(3), pages 365-380.
  2. Cramer,J. S., 2011. "Logit Models from Economics and Other Fields," Cambridge Books, Cambridge University Press, number 9780521188036, October.
  3. Jonathan Gruber, 1996. "Disability Insurance Benefits and Labor Supply," NBER Working Papers 5866, National Bureau of Economic Research, Inc.
  4. Pierre Koning, 2005. "Estimating the Impact of Experience Rating on the Inflow into Disability Insurance in the Netherlands," Working Papers 05-07, Utrecht School of Economics.
  5. Hausman, J. A. & Abrevaya, Jason & Scott-Morton, F. M., 1998. "Misclassification of the dependent variable in a discrete-response setting," Journal of Econometrics, Elsevier, vol. 87(2), pages 239-269, September.
  6. Arie Kapteyn & Klaas de Vos, 1999. "Social Security and Retirement in the Netherlands," NBER Chapters, in: Social Security and Retirement around the World, pages 269-303 National Bureau of Economic Research, Inc.
  7. Dan Black & Kermit Daniel & Seth Sanders, 2002. "The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust," American Economic Review, American Economic Association, vol. 92(1), pages 27-50, March.
  8. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier.
  9. J.S. Cramer, 2005. "Omitted Variables and Misspecified Disturbances in the Logit Model," Tinbergen Institute Discussion Papers 05-084/4, Tinbergen Institute.
  10. Wolter Hassink, 2000. "Job destruction through quits or layoffs?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(1), pages 45-47.
  11. Kreider, Brent & Riphahn, Regina T., 1998. "Applications to the U.S. Disability System: A Semiparametric Approach for Men and Women," IZA Discussion Papers 17, Institute for the Study of Labor (IZA).
  12. repec:dgr:uvatin:2005084 is not listed on IDEAS
  13. Hassink, R. & Ours, J.C. van & Ridder, G., 1997. "Dismissal through disability," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86871, Tilburg University.
  14. Benitez-Silva, Hugo & Buchinsky, Moshe & Chan, Hiu Man & Rust, John & Sheidvasser, Sofia, 1999. "An empirical analysis of the social security disability application, appeal, and award process," Labour Economics, Elsevier, vol. 6(2), pages 147-178, June.
  15. William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, 06.
  16. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
  17. Maarten Lindeboom, 1998. "Microeconometric Analysis of the Retirement Decision: The Netherlands," OECD Economics Department Working Papers 207, OECD Publishing.
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Citations

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Cited by:
  1. Pierre Koning & Daniel van Vuuren, 2006. "Hidden unemployment in disability insurance in the Netherlands; an empirical analysis based on employer data," CPB Discussion Paper 69, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Euwals, Rob & van Vuuren, Daniel & Wolthoff, Ronald P., 2006. "Early Retirement Behaviour in the Netherlands: Evidence from a Policy Reform," IZA Discussion Papers 1992, Institute for the Study of Labor (IZA).
  3. van Sonsbeek, J.M. & Gradus, R.H.J.M., 2006. "A microsimulation analysis of the 2006 regime change in the Dutch disability scheme," Economic Modelling, Elsevier, vol. 23(3), pages 427-456, May.
  4. Cremer, Helmuth & Lozachmeur, Jean-Marie & Pestieau, Pierre, 2009. "Use and misuse of unemployment benefits for early retirement," European Journal of Political Economy, Elsevier, vol. 25(2), pages 174-185, June.
  5. Ruud de Mooij, 2006. "Reinventing the welfare state," CPB Special Publication 60, CPB Netherlands Bureau for Economic Policy Analysis.
  6. 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).
  7. Hanel, Barbara, 2012. "The effect of disability pension incentives on early retirement decisions," Labour Economics, Elsevier, vol. 19(4), pages 595-607.
  8. Tunga Kantarci & Arthur Soest, 2008. "Gradual Retirement: Preferences and Limitations," De Economist, Springer, vol. 156(2), pages 113-144, June.
  9. Rob Euwals & Daniel van Vuuren & Annemiek van Vuren, 2011. "The impact of reforms on labour market exit probabilities," CPB Discussion Paper 179, CPB Netherlands Bureau for Economic Policy Analysis.

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