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First Exits from the Swedish Labor Market Due to Disability

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  • Daniela Andrén

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Abstract

The number of disability exits has been increasing in recent years, raising questions both about the well being of affected individuals, and about how to finance the related disability pensions. Using a longitudinal database owned by the Swedish National Social Insurance Board, this study analyzes the risk to exit into disability at a certain age, assuming that people remained in the labor force until that age. The estimates show that it was more than 7% higher for each 100 days of sickness, but was lower with each additional sickness spell. It was also higher for increments of 1% in the regional unemployment rate. These results suggest that more resources should be allocated for prevention, improving working conditions and designing the tasks of each job so as avoid overuse of employees working capacity.

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

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File URL: http://hdl.handle.net/10.1007/s11113-007-9061-6
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Bibliographic Info

Article provided by Springer in its journal Population Research and Policy Review.

Volume (Year): 27 (2008)
Issue (Month): 2 (April)
Pages: 227-238

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Handle: RePEc:kap:poprpr:v:27:y:2008:i:2:p:227-238

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Web page: http://www.springerlink.com/link.asp?id=102983

Related research

Keywords: Disability pension; Long-term sickness; Single risk model; Competing risks model;

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References

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  1. Haveman, Robert & Wolfe, Barbara, 2000. "The economics of disability and disability policy," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 18, pages 995-1051 Elsevier.
  2. James J. Heckman & Christopher J. Flinn, 1982. "New Methods for Analyzing Structural Models of Labor Force Dynamics," NBER Working Papers 0856, National Bureau of Economic Research, Inc.
  3. John Bound, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," NBER Working Papers 2816, National Bureau of Economic Research, Inc.
  4. 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.
  5. Marten Palme & Ingemar Svensson, 1997. "Social Security, Occupational Pensions, and Retirement in Sweden," NBER Working Papers 6137, National Bureau of Economic Research, Inc.
  6. Katz, Lawrence F & Meyer, Bruce D, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 973-1002, November.
  7. Parsons, Donald O, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Comment," American Economic Review, American Economic Association, vol. 81(5), pages 1419-26, December.
  8. Blau, David & Riphahn, Regina, 1998. "Labour Force transitions of Older Married Couples in Germany," CEPR Discussion Papers 1911, C.E.P.R. Discussion Papers.
  9. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
  10. Parsons, Donald O, 1980. "Racial Trends in Male Labor Force Participation," American Economic Review, American Economic Association, vol. 70(5), pages 911-20, December.
  11. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August.
  12. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
  13. Bound, John, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Reply," American Economic Review, American Economic Association, vol. 81(5), pages 1427-34, December.
  14. Parsons, Donald O, 1984. "Disability Insurance and Male Labor Force Participation: A Response," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 542-49, June.
  15. Narendranathan, W. & Stewart, M.B., 1989. "Modelling The Probability Of Leaving Unemployment: Competing Risks Models With Flexible Baseline Hazards," The Warwick Economics Research Paper Series (TWERPS) 331, University of Warwick, Department of Economics.
  16. Haveman, Robert H & Wolfe, Barbara L, 1984. "The Decline in Male Labor Force Participation: Comment," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 532-41, June.
  17. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
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Cited by:
  1. Hallberg, Daniel, 2003. "A Description of Routes out of the Labor Force for Workers in Sweden," Working Paper Series 2003:23, Uppsala University, Department of Economics.

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