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The Employment Effect of Stricter Rules for Eligibility for DI: Evidence from a Natural Experiment in Sweden

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Author Info
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.

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Length: 33 pages
Date of creation: 11 Apr 2008
Date of revision:
Handle: RePEc:hhs:sunrpe:2008_0003

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
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Web page: http://www.ne.su.se/
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Related research
Keywords: Disability Insurance Early Retirement

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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This page was last updated on 2008-7-5.


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