We investigate the impact of plant downsizing on disability pension utilization in Norway. Plant downsizing substantially increases the disability entry rate of workers in affected plants. Workers originally employed in plants that downsized by more than 60% between 1995 and 2000 were 24% more likely to utilize disability pensions in 2001 than comparable workers in non-downsized plants. We also estimate significant effects of downsizing on future earnings and mortality, which suggest that the increase in disability participation could be driven by an adverse effect of downsizing on the economic opportunities or the health of affected workers. (JEL: H55, I12, I38, J63, J65) (c) 2009 by the European Economic Association.
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Find related papers by JEL classification: H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions I12 - Health, Education, and Welfare - - Health - - - Health Production I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
References listed on IDEAS 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.:
Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 1999.
"Network Effects and Welfare Cultures,"
Working Papers
9903, Harris School of Public Policy Studies, University of Chicago.
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Bertrand, M. & Luttmer, E.F.P. & Mullainathan, S., 1998.
"Network Effects and Welfare Cultures,"
Papers
201, Princeton, Woodrow Wilson School - Public and International Affairs.
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