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Estimating the Effects of Recent Disability Reforms in The Netherlands

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  • Jan-Maarten van Sonsbeek

    (VU University Amsterdam)

  • Raymond Gradus

    (VU University Amsterdam)

Abstract

In the 1980s and 1990s, disability benefit rates in the Netherlands were among the highest in the world. However, since the beginning of this century the number of disability cases has dropped remarkably due to some very successful policy reforms. An administrative dataset of Dutch disability benefit recipients from 1999 until 2010 has been used for analyzing the immediate effects on disability inflow and outflow of the recent policy measures. Three measures introduced between 1998 and 2004 have had a large effect reducing the inflow into the disability scheme by over 40 percentage points. The new disability scheme introduced in 2006 adds another reduction of over 20 percentage points. Effects differ substantially over demographic groups and sectors of economic activities. Furthermore, it is shown that the effects of re-examinations of the disability stock are substantial in the short run but may be overcompensated in the long run by adverse effects.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-121/3.

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Date of creation: 12 Aug 2011
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Handle: RePEc:dgr:uvatin:20110121

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Web page: http://www.tinbergen.nl

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Keywords: disability; policy reform;

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  1. Pierre Koning & Daniel van Vuuren, 2006. "Disability insurance and unemployment insurance as substitute pathways," CPB Discussion Paper 70, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Ard den Reijer, 2006. "The Dutch business cycle: which indicators should we monitor?," DNB Working Papers 100, Netherlands Central Bank, Research Department.
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Cited by:
  1. Burkhauser, Richard V. & Daly, Mary C. & McVicar, Duncan & Wilkins, Roger, 2013. "Disability benefit growth and disability reform in the U.S.: lessons from other OECD nations," Working Paper Series 2013-40, Federal Reserve Bank of San Francisco.
  2. van Sonsbeek, Jan-Maarten & Alblas, Ridwan, 2012. "Disability benefit microsimulation models in the Netherlands," Economic Modelling, Elsevier, vol. 29(3), pages 700-715.

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