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An Analysis of Durations on the Disability Support Pension (DSP) Program

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  • Lixin Cai

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

The paper examines the factors that determine the duration on the Disability Support Pension (DSP) program using administrative data. We estimate two models based on two competing assumptions: the first model takes the standard assumption in duration models that all recipients will eventually leave the program. The second one takes into account the possibility that there may be some recipients who will never recover from their disabilities and hence not leave the program. Although there are differences in the results, both models indicate that female recipients, recipients who enter DSP at a young or old age, and recipients who transfer from unemployment benefits have the potential of a longer DSP duration.

Suggested Citation

  • Lixin Cai, 2004. "An Analysis of Durations on the Disability Support Pension (DSP) Program," Melbourne Institute Working Paper Series wp2004n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2004n08
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2004n08.pdf
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    References listed on IDEAS

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    Cited by:

    1. Paul Frijters & Robert Gregory, 2006. "From Golden Age to Golden Age: Australia's ‘Great Leap Forward’?," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 207-224, June.

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