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Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK

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Duncan McVicar

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Abstract

McVicar D. (2006) Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK, Regional Studies 40, 519--533. Over the last 30 years, many Organization for Economic Co-operation and Development (OECD) countries have seen a dramatic rise in the share of the working-age population receiving earnings replacement sickness and disability benefits. The reasons behind this growth -- particularly for the USA, but also to a lesser extent elsewhere -- have been extensively researched in the economics literature. What have been less well researched are the large spatial differences in the size of disability benefit rolls that have emerged in some countries over this period. The UK displays a distinct regional pattern where working-age men and women in the 'North’ are considerably more likely to be claiming disability benefits than those in the 'South’. The USA has its own version of the north/south divide, with many southern states displaying disproportionately large disability benefit rolls. The paper describes these regional patterns and explores the existing economics literature on disability benefits in search of potential explanations for them. McVicar D. (2006) Pourquoi les listes des demandeurs de prestations d'invalidite´ varient suivant la région?: une critique des preuves provenant des E-U et du R-U, Regional Studies 40, 519--533. Sur les 30 dernières années, beaucoup des pays-membres de l'OCDE ont témoigné d'une montée vertigineuse de la part de la population active qui font une demande de prestations de l'assurance maladie et d'invalidité invalidité. La documentation économique a approfondi les raisons qui expliquent cette montée -- notamment pour les E-U mais aussi dans une moindre mesure ailleurs. Ce qui a été moins bien recherché c'est la variation géographique importante des listes des demandeurs de prestations d'invalidité qui se font le jour dans certains pays sur cette période. Le R-U montre une distribution régionale nette à partir de laquelle il est plus probable que les populations masculine et féminine en âge de travailler du 'nord’ font une demande des prestations invalidité que ne le font celles du 'sud’. Les E-U ont leur propre version du clivage nord--sud; à savoir beaucoup des états du sud ont des listes des demandeurs de prestations d'invalidite´ disproportionnées. Cet article cherche à présenter ces distributions régionales et à examiner la documentation économique existante sur prestations d'invalidité afin de rechercher des explications éventuelles. Santé, Invalidité, Prestations d'invalidité, Prestations d'incapacité, Marchés du travail McVicar D. (2006) Warum sind Invalidenrenten von Region zu Region verschieden? Eine Besprechung von Beweisen aus den USA und dem UK, Regional Studies 40, 519--533. Im Laufe der letzten 30 Jahre haben viele OECD Länder einen dramatischen Anstieg des Anteils der Bevölkerung im erwerbsfähigen Alter gesehen, die statt Verdienst Krankengeld und Invalidenrenten empfangen.Die Gründe für diesen Anstieg -- besonders in den USA, aber auch, obschon in geringerem Maße, andernorts -- sind in der Wirtschaftsliteratur ausgiebig untersucht worden. Was jedoch weniger gründlich untersucht wurde, sind die beträchtlichen räumlichen Unterschiede im Umfang der Invalidenrentenlisten, die sich in manchen Ländern in diesem Zeitraum ergeben haben. Das UK weist ein ausgesprochen regionales Muster auf, in dem die Namen sowohl von Männern wie von Frauen im erwerbsfähigen Alter im 'Norden’weitaus öfter auf der Liste der Invalidenrente in Anspruch Nehmenden erscheinen als im Süden. Die USA haben ihre eigene Version der Nord--Süd 'Wasserscheide’, in der viele Südstaaten unverhältnismäßig lange Invalidenrentnerlisten aufweisen. Dieser Aufsatz beschreibt diese Regionalmuster, und untersucht die bereits vorliegende Wirtschaftsliteratur zur Invalidenrentnerfrage auf der Suche nach einer möglichen Erklärung dafür. Gesundheit, Invalidenrenten, Behindertenrenten, Arbeitswelt McVicar D. (2006) ¿Por qué las listas de prestaciones por discapacidad varían según las regiones? Una revisión de ejemplos de Estados Unidos y el Reino Unido, Regional Studies 40, 519--533. En los últimos 30 años muchos países de la OCDE han notado un espectacular aumento de la población en edad de trabajar que recibe prestaciones por enfermedad o discapacidad. El motivo de este crecimiento, especialmente en los EE. UU. pero también en menor medida en otros países, se ha estudiado exhaustivamente en la literatura sobre economía. No obstante, se han investigado poco las grandes diferencias espaciales en cuanto al número de personas que reciben prestaciones por discapacidad que han surgido en algunos países durante este periodo. En el Reino Unido se observa un modelo regional característico en las regiones del norte donde mujeres y hombres en edad de trabajar presentan una mayor tendencia a solicitar prestaciones que los del sur. En Estados Unidos hay una versión propia de la división norte--sur porque en el sur hay desproporcionadamente más personas que reciben prestaciones por discapacidad. Aquí describimos estos modelos regionales y analizamos la literatura actual sobre economía con referencia a las prestaciones por discapacidad para hallar posibles explicaciones a este fenómeno. Salud, Discapacidad, Prestaciones por discapacidad, Prestación por incapacidad, Mercados de trabajo

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 40 (2006)
Issue (Month): 5 (July)
Pages: 519-533
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Handle: RePEc:taf:regstd:v:40:y:2006:i:5:p:519-533

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Related research
Keywords: Health; Disability; Disability benefits; Incapacity Benefit; Labour markets;

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References listed on IDEAS
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  1. Haveman, Robert H. & Wolfe, Barbara L., 1984. "Disability transfers and early retirement: a casual relationship?," Journal of Public Economics, Elsevier, vol. 24(1), pages 47-66, June. [Downloadable!] (restricted)
  2. Erdem, Esra & Glyn, Andrew, 2001. " Job Deficits in UK Regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 737-52, Special I. [Downloadable!] (restricted)
  3. Blundell, Richard & Johnson, Paul, 1998. "Pensions and Labor-Market Participation in the United Kingdom," American Economic Review, American Economic Association, vol. 88(2), pages 168-72, May. [Downloadable!] (restricted)
  4. Kreider, Brent & Riphahn, Regina, 1997. "Applications to the US Disability Program: A Semiparametric Approach," CEPR Discussion Papers 1559, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Disney, Richard & Webb, Steven, 1991. "Why Are There So Many Long Term Sick in Britain?," Economic Journal, Royal Economic Society, vol. 101(405), pages 252-62, March. [Downloadable!] (restricted)
  6. Gruber, Jonathan & Kubik, Jeffrey D., 1997. "Disability insurance rejection rates and the labor supply of older workers," Journal of Public Economics, Elsevier, vol. 64(1), pages 1-23, April. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. Haveman, Robert & de Jong, Philip & Wolfe, Barbara, 1991. "Disability Transfers and the Work Decision of Older Men," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 939-49, August. [Downloadable!] (restricted)
  9. Stephen Fothergill, 2001. "The True Scale of the Regional Problem in the UK," Regional Studies, Taylor and Francis Journals, vol. 35(3), pages 241-246, May. [Downloadable!] (restricted)
  10. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD, Economics Department. [Downloadable!]
  11. Jonathan Gruber & Jeffrey D. Kubik, 1994. "Disability Insurance Rejection Rates and the Labor Supply of Older Workers," NBER Working Papers 4941, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Lynch, Mauricea, 1991. "The Duration of Invalidity Benefit Claims: A Proportional Hazard Model," Applied Economics, Taylor and Francis Journals, vol. 23(6), pages 1043-52, June.
  13. 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. [Downloadable!]
  14. Smith, James P, 1998. "Socioeconomic Status and Health," American Economic Review, American Economic Association, vol. 88(2), pages 192-96, May. [Downloadable!] (restricted)
  15. David H. Autor & Mark G. Duggan, 2003. "The Rise In The Disability Rolls And The Decline In Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 157-205, February. [Downloadable!] (restricted)
  16. 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. [Downloadable!] (restricted)
  17. Christina Beatty & Stephen Fothergill, 1996. "Labour Market Adjustment in Areas of Chronic Industrial Decline: The Case of the UK Coalfields," Regional Studies, Taylor and Francis Journals, vol. 30(7), pages 627-640, November. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Darby, Julia & Mélitz, Jacques, 2007. "Labour Market Adjustment, Social Spending and the Automatic Stabilizers in the OECD," CEPR Discussion Papers 6230, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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