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Early Interventions and Disability Insurance: Experience from a Field Experiment

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Author Info

  • Engström, Per

    ()
    (Uppsala University)

  • Hägglund, Pathric

    ()
    (SOFI, Stockholm University)

  • Johansson, Per

    ()
    (IFAU)

Abstract

This paper estimates the effects of early interventions in the Swedish sickness insurance system. The aim of the interventions is to screen and, further to, rehabilitate sick listed individuals. We find that the early interventions – in contrast to what is expected – increase the inflow into disability benefits by around 20 percent. In order to explain the results, we develop a simple theoretical model based on asymmetric information of the health status. The model predicts that the treatment effect is larger for individuals with low incentives to return to work. In order to test this prediction we estimate effects for sick listed employed and unemployed separately. Consistent with the model's prediction, we find that the effect is larger for the unemployed than for the employed.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6553.

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Length: 41 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6553

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Related research

Keywords: monitoring; screening; vocation rehabilitation; disability insurance; sickness insurances; unemployment insurance; randomized experiment;

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References

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  1. Hesselius, Patrik & Johansson, Per & Larsson, Laura, 2005. "Monitoring sickness insurance claimants: evidence from a social experiment," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2005:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Borghans, Lex & Gielen, Anne C. & Luttmer, Erzo F.P., 2010. "Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform," IZA Discussion Papers 5412, Institute for the Study of Labor (IZA).
  3. Frölich, Markus, 2002. "Nonparametric IV Estimation of Local Average Treatment Effects with Covariates," IZA Discussion Papers 588, Institute for the Study of Labor (IZA).
  4. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  5. Lars Pico Geerdsen, 2006. "Is there a Threat Effect of Labour Market Programmes? A Study of ALMP in the Danish UI System," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 116(513), pages 738-750, 07.
  6. Johansson, Per & Lindahl, Erica, 2010. "Can sickness absence be affected by information meetings? Evidence from a social experiment," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2010:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  7. Philip de Jong & Maarten Lindeboom & Bas van der Klaauw, 2011. "Screening Disability Insurance Applications," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 9(1), pages 106-129, 02.
  8. Graversen, Brian Krogh & van Ours, Jan C., 2008. "How to help unemployed find jobs quickly: Experimental evidence from a mandatory activation program," Journal of Public Economics, Elsevier, Elsevier, vol. 92(10-11), pages 2020-2035, October.
  9. Michael Rosholm & Michael Svarer, 2008. "The Threat Effect of Active Labour Market Programmes," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 110(2), pages 385-401, 06.
  10. Geerdsen, Lars Pico & Holm, Anders, 2007. "Duration of UI periods and the perceived threat effect from labour market programmes," Labour Economics, Elsevier, Elsevier, vol. 14(3), pages 639-652, June.
  11. Parsons, Donald O, 1991. "Self-Screening in Targeted Public Transfer Programs," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 859-76, August.
  12. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, American Economic Association, vol. 93(4), pages 1313-1327, September.
  13. Arni, Patrick & Lalive, Rafael & van Ours, Jan C., 2009. "How Effective Are Unemployment Benefit Sanctions?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7541, C.E.P.R. Discussion Papers.
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Cited by:
  1. Arni, Patrick, 2012. "Kausale Evaluation von Pilotprojekten: Die Nutzung von Randomisierung in der Praxis," IZA Standpunkte, Institute for the Study of Labor (IZA) 52, Institute for the Study of Labor (IZA).

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