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Promoting Employment of Disabled Women in Spain; Evaluating a Policy

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  • Judit Vall Castello

Abstract

The Social Security system is Spain provides four different types of permanente disability pensions which are granted according to the severity of the disabling condition and the remaining capacity to work that is left for these individuals. Therefore, the system is designed to allow for a certain part of the disabled individuals to work while receiving the disability pension. However, the majority of these individuals do not effectively work and employment rates for this group of people have remained very low since 1996. The aim of this research is to evaluate the results of an employment promotion policy introduced in 2004 which increased the deductions of the Social Security contributions paid by employers that hire disabled women. In order to do that we first analyze employment rates of disabled individuals in Spain from 1996 until 2007 followed by the estimation of a bivariate probit model to evaluate the existence of shifts in employment trends in the women relative to the men sample conditioning on the existence of preexisting trends. We find that the increase in the deductions of the Social Security contributions resulted in rises in employment rates for disabled women with respect to disabled men.

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Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2010-10.

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Date of creation: Mar 2010
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Handle: RePEc:fda:fdaddt:2010-10

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References

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  1. Christine Jolls & J.J. Prescott, 2004. "Disaggregating Employment Protection: The Case of Disability Discrimination," NBER Working Papers 10740, National Bureau of Economic Research, Inc.
  2. Thierry Magnac & David Thesmar, 2002. "Identifying Dynamic Discrete Decision Processes," Econometrica, Econometric Society, Econometric Society, vol. 70(2), pages 801-816, March.
  3. Hugo Ben�tez-Silva & Frank Heiland, 2007. "The social security earnings test and work incentives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(3), pages 527-555.
  4. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana, 2006. "Award Errors and Permanent Disability Benefits in Spain," Working Papers 2006-18, FEDEA.
  5. Daron Acemoglu & Joshua Angrist, 1998. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 98-13, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
  7. Christine Jolls, 2004. "Identifying the Effects of the Americans with Disabilities Act Using State-Law Variation: Preliminary Evidence on Educational Participation Effects," American Economic Review, American Economic Association, American Economic Association, vol. 94(2), pages 447-453, May.
  8. Hugo Ben�tez-Silva & Moshe Buchinsky & Hiu Man Chan & Sofia Cheidvasser & John Rust, 2004. "How large is the bias in self-reported disability?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 19(6), pages 649-670.
  9. John Bound & Michael Schoenbaum & Todd R. Stinebrickner & Timothy Waidmann, 1998. "The Dynamic Effects of Health on the Labor Force Transitions of Older Workers," NBER Working Papers 6777, National Bureau of Economic Research, Inc.
  10. Kathleen Beegle & Wendy A. Stock, 2003. "The Labor Market Effects of Disability Discrimination Laws," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
  11. Benitez-Silva, Hugo & Buchinsky, Moshe & Chan, Hiu Man & Rust, John & Sheidvasser, Sofia, 1999. "An empirical analysis of the social security disability application, appeal, and award process," Labour Economics, Elsevier, Elsevier, vol. 6(2), pages 147-178, June.
  12. Hugo Benitez-Silva & Moshe Buchinsky & John Rust, 2005. "How Large are the Classification Errors in the Social Security Disability Award Process?," Department of Economics Working Papers, Stony Brook University, Department of Economics 05-02, Stony Brook University, Department of Economics.
  13. Miguel Angel Malo & Fernando Muñoz-Bullón, 2006. "Employment promotion measures and the quality of the job match for persons with disabilities," Hacienda Pública Española, IEF, IEF, vol. 179(4), pages 79-111, September.
  14. H. Benitez-Silva & F. Heiland, 2008. "Early claiming of social security benefits and labour supply behaviour of older Americans," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(23), pages 2969-2985.
  15. Thomas DeLeire, 2000. "The Wage and Employment Effects of the Americans with Disabilities Act," Working Papers, Harris School of Public Policy Studies, University of Chicago 0008, Harris School of Public Policy Studies, University of Chicago.
  16. Bell, David N.F. & Heitmueller, Axel, 2005. "The Disability Discrimination Act in the UK: Helping or Hindering Employment Amongst the Disabled?," IZA Discussion Papers 1476, Institute for the Study of Labor (IZA).
  17. David Autor & Mark Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," NBER Working Papers 12436, National Bureau of Economic Research, Inc.
  18. Rafael Lalive & Jean-Philippe Wuellrich & Josef Zweimüller, 2009. "Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach," NRN working papers, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria 2009-11, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  19. Christine Jolls, 2004. "Identifying the Effects of the Americans with Disabilities Act Using State-Law Variation: Preliminary Evidence on Educational Participation Effects," NBER Working Papers 10528, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Marie, Olivier & Vall Castello, Judit, 2012. "Measuring the (income) effect of disability insurance generosity on labour market participation," Journal of Public Economics, Elsevier, Elsevier, vol. 96(1), pages 198-210.
  2. Pilar García-Gómez & Sergi Jiménez-Martín & Judit Vall Castelló, 2014. "Financial Incentives, Health and Retirement in Spain," NBER Chapters, National Bureau of Economic Research, Inc, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement National Bureau of Economic Research, Inc.
  3. Jose I. Silva & Judit Vall-Castello, 2013. "Partial Disability System and Labor Market Adjustment: The Case of Spain," Upjohn Working Papers and Journal Articles, W.E. Upjohn Institute for Employment Research 13-201, W.E. Upjohn Institute for Employment Research.
  4. Silva, José I. & Vall-Castello, Judit, 2012. "Why Are So Many Disabled Individuals Not Working in Spain? A Job Search Approach," IZA Discussion Papers 6317, Institute for the Study of Labor (IZA).

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