Moral Hazard and Disability Insurance: On the Incidence of Hard-to-Diagnose Medical Conditions in the Canada/Quebec Pension Plan Disability Program
This paper examines the prevalence of hard-to-diagnose conditions, such as musculoskeletal disorders, in the Canada/Quebec Pension Plan (C/QPP) disability program. Specifically, it uses aggregate data to study the effect of disability benefits and an increase in the rigour of the medical screening on the composition of the medical conditions on the C/QPP's disability rolls. The empirical findings from this paper suggest that the increased generosity of disability benefits has contributed to the increase in the incidence of musculoskeletal conditions on the disability rolls. Furthermore, the increased rigour of the medical screening has induced a reduction in the incidence of musculoskeletal conditions on the disability rolls in recent years.
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Volume (Year): 28 (2002)
Issue (Month): 3 (September)
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