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Estimating the Effects of Recent Disability Reforms in The Netherlands

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  • Jan-Maarten van Sonsbeek

    (VU University Amsterdam)

  • Raymond Gradus

    (VU University Amsterdam)

Abstract

In the 1980s and 1990s, disability benefit rates in the Netherlands were among the highest in the world. However, since the beginning of this century the number of disability cases has dropped remarkably due to some very successful policy reforms. An administrative dataset of Dutch disability benefit recipients from 1999 until 2010 has been used for analyzing the immediate effects on disability inflow and outflow of the recent policy measures. Three measures introduced between 1998 and 2004 have had a large effect reducing the inflow into the disability scheme by over 40 percentage points. The new disability scheme introduced in 2006 adds another reduction of over 20 percentage points. Effects differ substantially over demographic groups and sectors of economic activities. Furthermore, it is shown that the effects of re-examinations of the disability stock are substantial in the short run but may be overcompensated in the long run by adverse effects.

Suggested Citation

  • Jan-Maarten van Sonsbeek & Raymond Gradus, 2011. "Estimating the Effects of Recent Disability Reforms in The Netherlands," Tinbergen Institute Discussion Papers 11-121/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20110121
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    References listed on IDEAS

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    1. Ard den Reijer, 2006. "The Dutch business cycle: which indicators should we monitor?," DNB Working Papers 100, Netherlands Central Bank, Research Department.
    2. Pierre Koning & Daniel van Vuuren, 2010. "Disability insurance and unemployment insurance as substitute pathways," Applied Economics, Taylor & Francis Journals, vol. 42(5), pages 575-588.
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    Cited by:

    1. de Groot, Nynke & Koning, Pierre, 2016. "Assessing the effects of disability insurance experience rating. The case of The Netherlands," Labour Economics, Elsevier, vol. 41(C), pages 304-317.
    2. Oskar Mittag & Toomas Kotkas & Christina Reese & Hanna Kampling & Henning Groskreutz & Wouter Boer & Felix Welti, 2018. "Intervention policies and social security in case of reduced working capacity in the Netherlands, Finland and Germany: a comparative analysis," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 63(9), pages 1081-1088, December.
    3. Koning, Pierre & van Sonsbeek, Jan-Maarten, 2017. "Making disability work? The effects of financial incentives on partially disabled workers," Labour Economics, Elsevier, vol. 47(C), pages 202-215.
    4. Nynke de Groot & Pierre Koning, 2022. "A burden too big to bear? The effect of experience‐rated disability insurance premiums on firm bankruptcies and employment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 214-242, January.
    5. Koning Pierre & Vethaak Heike, 2021. "Decomposing Employment Trends of Disabled Workers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(4), pages 1217-1255, October.
    6. Konle-Seidl, Regina, 2017. "Retention and re-integration of older workers into the labour market: What works?," IAB-Discussion Paper 201717, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Kyyrä, Tomi & Tuomala, Juha, 2023. "The effects of employers’ disability and unemployment insurance costs on benefit inflows," Labour Economics, Elsevier, vol. 85(C).
    8. Kyyrä, Tomi & Paukkeri, Tuuli, 2018. "Does experience rating reduce sickness and disability claims? Evidence from policy kinks," Journal of Health Economics, Elsevier, vol. 61(C), pages 178-192.
    9. René Böheim & Thomas Leoni, 2016. "Disability policies: Reform strategies in a comparative perspective," NBER Working Papers 22206, National Bureau of Economic Research, Inc.
    10. Christl, Michael & Kucsera, Dénes & Lorenz, Hanno, 2015. "Jung, älter, arbeitslos? Wie Ältere länger in Beschäftigung gehalten werden können, ohne die Jungen in die Arbeitslosigkeit zu treiben," EconStor Research Reports 119605, ZBW - Leibniz Information Centre for Economics.
    11. Richard V. Burkhauser & Mary C. Daly & Nicolas R. Ziebarth, 2016. "Protecting working-age people with disabilities: experiences of four industrialized nations [Absicherung von Personen mit Erwerbsminderung: Erfahrungen aus vier Industrieländern]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 367-386, December.
    12. Pilar García‐Gómez & Anne C. Gielen, 2018. "Mortality effects of containing moral hazard: Evidence from disability insurance reform," Health Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 606-621, March.
    13. Kools, Lieke & Koning, Pierre, 2019. "Graded return-to-work as a stepping stone to full work resumption," Journal of Health Economics, Elsevier, vol. 65(C), pages 189-209.
    14. Tunga Kantarcı & Jan‐Maarten van Sonsbeek & Yi Zhang, 2023. "The heterogeneous impact of stricter criteria for disability insurance," Health Economics, John Wiley & Sons, Ltd., vol. 32(9), pages 1898-1920, September.
    15. Silvia Garcia Mandico & Pilar (P.) Garcia-Gomez & Anne (A.C.) Gielen & Owen (O.A.) O'Donnell, 2018. "Earnings responses to disability benefit cuts," Tinbergen Institute Discussion Papers 18-023/V, Tinbergen Institute.
    16. van Sonsbeek, Jan-Maarten & Alblas, Ridwan, 2012. "Disability benefit microsimulation models in the Netherlands," Economic Modelling, Elsevier, vol. 29(3), pages 700-715.
    17. Richard Burkhauser & Mary Daly & Duncan McVicar & Roger Wilkins, 2014. "Disability benefit growth and disability reform in the US: lessons from other OECD nations," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-30, December.
    18. Pierre Koning, 2016. "Privatizing sick pay: Does it work?," IZA World of Labor, Institute of Labor Economics (IZA), pages 324-324, December.
    19. Christine Mayrhuber & Silvia Rocha-Akis, 2013. "Anreizsysteme zur Weiterbeschäftigung älterer Arbeitnehmerinnen und Arbeitnehmer," WIFO Studies, WIFO, number 46905, Juni.
    20. Matthew J. Hill & Jose I. Silva & Judit Vall Castello, 2019. "Act now: The effects of the 2008 Spanish disability reform," Health Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 906-920, July.
    21. Umut Oguzoglu, 2016. "Disability and Multi-State Labour Force Choices with State Dependence," The Economic Record, The Economic Society of Australia, vol. 92(296), pages 28-46, March.

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    More about this item

    Keywords

    disability; policy reform;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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