Karlström, Anders () (Systems Analysis and Economics, Royal Institute of Technology) Palme, Mårten () (Dept. of Economics, Stockholm University) Svensson, Ingemar () (Social Insurance Agency)
Abstract
We study the effect of a reform of the Swedish disability insurance (DI) program whereby the special eligibility rules for workers in the age group 60 to 64 were abolished. First, we use a differences-in-differences approach to study changes in the disability take-up as compared to the age group 55 to 59. Then, we use a similar approach to study to what extent the employment effect of the reform is "crowded out" by an increase in the utilization of the sickpay insurance (SI) and/or the unemployment insurance (UI). In an extended analysis, we study the effect of firm closure on employment and the utilization of different labor market insurance programs in different age groups before and after the reform.
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Publisher Info
Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number
2008:3.
Length: 33 pages Date of creation: 11 Apr 2008 Date of revision: Handle: RePEc:hhs:sunrpe:2008_0003
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Find related papers by JEL classification: H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
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