Do partial disability pensions close the earnings gap?
AbstractIn this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work in a different occupation after disability onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater even though they receive greater benefits.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 55920.
Date of creation: May 2014
Date of revision:
disability pensions; earnings losses; older workers.;
Find related papers by JEL classification:
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
This paper has been announced in the following NEP Reports:
- NEP-AGE-2014-05-24 (Economics of Ageing)
- NEP-ALL-2014-05-24 (All new papers)
- NEP-EUR-2014-05-24 (Microeconomic European Issues)
- NEP-LAB-2014-05-24 (Labour Economics)
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