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Financial incentives in disability insurance in the Netherlands

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Author Info
Annemiek van VUren ()
Daniël van Vuuren ()

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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.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Papers with number 45.

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Date of creation: Apr 2005
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Handle: RePEc:cpb:discus:45

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Related research
Keywords: Disability Insurance; financial incentives; moral hazard;

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Find related papers by JEL classification:
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

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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.:
  1. 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!]
  2. J.S. Cramer, 2005. "Omitted Variables and Misspecified Disturbances in the Logit Model," Tinbergen Institute Discussion Papers 05-084/4, Tinbergen Institute. [Downloadable!]
  3. 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. [Downloadable!] (restricted)
  4. David H. Autor & Mark G. Duggan, 2002. "The Rise in Disability Recipiency and the Decline in Unemployment," Working Papers, Center for Retirement Research at Boston College 2002-07, Center for Retirement Research. [Downloadable!]
    Other versions:
  5. Hugo Benitez-Silva & Moshe Buchinsky & Hiu-Man Chan & John Rust & Sofia Sheivasser, 1997. "An Empirical Analysis of the Social Security Disability Application, Appeal, and Award Process," Public Economics 9712001, EconWPA, revised 16 Feb 1998. [Downloadable!]
  6. Arie Kapteyn & Klaas de Vos, 1997. "Social Security and Retirement in The Netherlands," NBER Working Papers 6135, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Jonathan Gruber, 1996. "Disability Insurance Benefits and Labor Supply," NBER Working Papers 5866, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Riphahn, Regina T. & Kreider, Brent, 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).
  9. Pierre Koning, 2004. "Estimating the impact of experience rating on the inflow into disability insurance in the Netherlands," CPB Discussion Papers 37, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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  10. 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. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
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  12. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Hassink, Wolter H J, 2000. "Job Destruction through Quits or Layoffs?," Applied Economics Letters, Taylor and Francis Journals, vol. 7(1), pages 45-47, January. [Downloadable!] (restricted)
  14. Maarten Lindeboom, 1998. "Microeconometric Analysis of the Retirement Decision: The Netherlands," OECD Economics Department Working Papers 207, OECD, Economics Department. [Downloadable!]
  15. 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)
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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. Pierre Koning & Daniël van Vuuren, 2006. "Hidden unemployment in disability insurance in the Netherlands; an empirical analysis based on employer data," CPB Discussion Papers 69, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  2. Ruud de Mooij, 2006. "Reinventing the welfare state," CPB Special Publications 60, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Tunga Kantarci & Arthur Soest, 2008. "Gradual Retirement: Preferences and Limitations," De Economist, Springer, vol. 156(2), pages 113-144, June. [Downloadable!] (restricted)
  4. Sonsbeek, J.M. van & Gradus, R.H.J.M., 2005. "A microsimulation analysis of the 2006 regime change in the Dutch disability scheme," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
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