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Disability benefits, replacement ratios and the labour market. A time series approach

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  • Einar Bowitz

Abstract

In this paper, a study of factors affecting the number of disability beneficiaries in Norway is presented. Equations determining entry rates into the disability benefit system are estimated using aggregated time series data grouped by sex and age. Unemployment is found to influence disability entry. The results regarding effects of the replacement ratio are ambiguous. A model determining the number of beneficiaries, including the estimated entry equations is presented. The model is used to simulate the effect of counterfactual changes in exogenous variables on the number of disability beneficiaries.

Suggested Citation

  • Einar Bowitz, 1997. "Disability benefits, replacement ratios and the labour market. A time series approach," Applied Economics, Taylor & Francis Journals, vol. 29(7), pages 913-923.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:913-923
    DOI: 10.1080/000368497326570
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    References listed on IDEAS

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    1. Jonathan S. Leonard, 1985. "Labor Supply Incentives and Disincentives for the Disabled," NBER Working Papers 1744, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Maja Prudzienica, 2012. "Disabled Persons on Labour Market - Analysis of Solutions in Poland and Selected EU Countries," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    2. Holen, Dag S., 2007. "It Ain't Necessariy So," Memorandum 19/2008, Oslo University, Department of Economics.
    3. Duncan McVicar, 2008. "Why Have Uk Disability Benefit Rolls Grown So Much?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 114-139, February.
    4. Duncan McVicar, 2006. "Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK," Regional Studies, Taylor & Francis Journals, vol. 40(5), pages 519-533.
    5. Melanie Jones & Paul Latreille, 2011. "Disability and self-employment: evidence for the UK," Applied Economics, Taylor & Francis Journals, vol. 43(27), pages 4161-4178.
    6. Butter, Frank A.G. den & Kock, Udo, 2001. "Social security, economic growth and poverty : theoretical considerations and guidelines for institutional arrangements," Serie Research Memoranda 0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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