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Disability, capacity for work and the business cycle: an international perspective

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Listed:
  • Hugo Benítez-Silva
  • Richard Disney
  • Sergi Jiménez-Martín

Abstract

"Important policy issues arise from the high and growing number of people claiming disability benefits for reasons of incapacity for work in OECD countries. Economic conditions play an important part in explaining both the stock of disability benefit claimants and inflows to and outflows from that stock. Employing a variety of cross-country and country-specific household panel data sets, as well as administrative data, we find strong evidence that local variations in unemployment have an important explanatory role for disability benefit receipt, with higher total enrolments, lower outflows from rolls and, often, higher inflows into disability rolls in regions and periods of above-average unemployment. In understanding the nature of the cyclical fluctuations and trends in disability it is important to distinguish between work disability and health disability. The former is likely to be influenced by economic conditions and welfare programmes while the latter evolves in a slower fashion with medical technology and demographic changes. There is little evidence of health disability being related to the business cycle, so cyclical variations are driven by work disability. The rise in unemployment due to the current global economic crisis is expected to increase the number of disability insurance claimants." Copyright (c) CEPR, CES, MSH, 2010.

Suggested Citation

  • Hugo Benítez-Silva & Richard Disney & Sergi Jiménez-Martín, 2010. "Disability, capacity for work and the business cycle: an international perspective," Economic Policy, CEPR;CES;MSH, vol. 25, pages 483-536, July.
  • Handle: RePEc:bla:ecpoli:v:25:y:2010:i::p:483-536
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Pensiones de invalidez: el increíble programa menguante
      by Sergi Jiménez in Nada Es Gratis on 2015-01-23 13:00:02

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    Cited by:

    1. repec:wfo:wstudy:42691 is not listed on IDEAS
    2. Purvi Sevak & Lucie Schmidt & Onur Altindag, 2012. "The Great Recession, Older Workers with Disabilities, and Implications for Retirement Security," Working Papers wp277, University of Michigan, Michigan Retirement Research Center.
    3. Vall Castello, Judit, 2012. "Promoting employment of disabled women in Spain; Evaluating a policy," Labour Economics, Elsevier, vol. 19(1), pages 82-91.
    4. M. Agovino & A. Rapposelli, 2017. "Speculation on a Flexicurity Index for Disabled People: The Italian Case," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 389-414, January.
    5. Gijs Roelofs & Daniel Vuuren, 2017. "The Decentralization of Social Assistance and the Rise of Disability Insurance Enrolment," De Economist, Springer, vol. 165(1), pages 1-21, March.
    6. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall Castelló, 2016. "Great Recession and disability insurance in Spain," Economics Working Papers 1519, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2017.
    7. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall-Castello, 2016. "Great Recession and Disability in Spain," Working Papers 896, Barcelona Graduate School of Economics.
    8. García-Gómez, Pilar, 2011. "Institutions, health shocks and labour market outcomes across Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 200-213, January.
    9. James Banks & Carl Emmerson & Gemma Tetlow, 2016. "Health Capacity to Work at Older Ages: Evidence from the United Kingdom," NBER Chapters,in: Social Security Programs and Retirement Around the World: The Capacity to Work at Older Ages, pages 329-357 National Bureau of Economic Research, Inc.
    10. Isabelle Joumard & Mauro Pisu & Debbie Bloch, 2012. "Tackling income inequality: The role of taxes and transfers," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 37-70.
    11. Rob Euwals & Annemiek van Vuren & Daniël van Vuuren, 2011. "The impact of reforms on labour market exit probabilities," CPB Discussion Paper 179, CPB Netherlands Bureau for Economic Policy Analysis.
    12. repec:wfo:wstudy:58532 is not listed on IDEAS
    13. Jan-Maarten van Sonsbeek & Raymond H. J. M. Gradus, 2013. "Estimating the effects of recent disability reforms in the Netherlands," Oxford Economic Papers, Oxford University Press, vol. 65(4), pages 832-855, October.
    14. James Banks & Richard Blundell & Antoine Bozio & Carl Emmerson, 2012. "Disability, Health and Retirement in the United Kingdom," NBER Chapters,in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 41-77 National Bureau of Economic Research, Inc.
    15. Sergi Jimenez-Martin & Judit Castello, 2013. "Business cycle and spillover effects on pre-retirement behavior in Spain," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    16. Ulrike Famira-Mühlberger & Ulrike Huemer & Christine Mayrhuber, 2015. "The Impact of Social Security Systems on the Employment Rate of the Elderly in Traditional Welfare States," WIFO Working Papers 499, WIFO.
    17. Begoña Cueto & Miguel A. Malo, 2016. "Do Partial Disability Pensions Close the Earnings Gap?," Hacienda Pública Española, IEF, vol. 216(1), pages 103-126, March.
    18. Isabelle Joumard & Mauro Pisu & Debra Bloch, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 3. Income Redistribution via Taxes and Transfers Across OECD Countries," OECD Economics Department Working Papers 926, OECD Publishing.
    19. M. Agovino & A. Rapposelli, 2017. "Regional Performance Trends in Providing Employment for Persons with Disabilities: Evidence from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 593-615, January.
    20. Euwals, Rob & van Vuren, Annemiek & van Vuuren, Daniel, 2011. "The Decline of Early Retirement Pathways in the Netherlands: An Empirical Analysis for the Health Care Sector," IZA Discussion Papers 5810, Institute for the Study of Labor (IZA).
    21. repec:wfo:wstudy:58579 is not listed on IDEAS

    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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