Disability Retirement in a Welfare State
The increasing number of disability pensioners may put a strain on the welfare state. In this paper, the authors try to assess the effect of financial incentives on disability entrance. A sample of Norwegians on long-term sick leave at the beginning of 1989 is examined as of the end of 1989, and the exit routes are studied in a multinomial logit model. The results indicate that the incentive effects of wages are larger than the disincentive effects of benefits. Furthermore, there is no evidence that having a 'subjective' diagnosis affects the probability of becoming a disability pensioner. Copyright 1999 by The editors of the Scandinavian Journal of Economics.
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Volume (Year): 101 (1999)
Issue (Month): 1 (March)
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