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Promoting employment of disabled women in Spain; Evaluating a policy

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  • Vall Castello, Judit

Abstract

Even though the Disability System in Spain is designed to allow partially disabled individuals to combine the receipt of the benefits with a job, their employment rates have remained very low since 1996. The aim of this paper is to evaluate the results of an employment promotion policy introduced in Spain in 2004 which increased the deductions to the Social Security contributions paid by employers that hired disabled women. We apply difference-in-difference models and estimate a recursive bivariate probit model to evaluate the existence of shifts in employment trends in the women relative to the men sample conditioning on the existence of preexisting trends. We find that the impact of the policy is significant and we estimate an average elasticity of employment of 0.14 for partially and of 0.08 for totally disabled women relative to the deductions in the employer Social Security contributions. Finally, when we extrapolate the results beyond our sample, we estimate that 7100 disabled women were able to find a job in Spain due to the policy with an associated cost of 10,997.900 euro for the government.

Suggested Citation

  • Vall Castello, Judit, 2012. "Promoting employment of disabled women in Spain; Evaluating a policy," Labour Economics, Elsevier, vol. 19(1), pages 82-91.
  • Handle: RePEc:eee:labeco:v:19:y:2012:i:1:p:82-91
    DOI: 10.1016/j.labeco.2011.08.003
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    References listed on IDEAS

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    Cited by:

    1. Sergi JimeÌ nez-MartiÌ n & Arnau Juanmarti Mestres & Judit Vall Castello, 2017. "Hiring subsidies for people with disabilities: Do they work?," Policy Papers 2017-11, FEDEA.
    2. Marie, Olivier & Vall Castello, Judit, 2012. "Measuring the (income) effect of disability insurance generosity on labour market participation," Journal of Public Economics, Elsevier, vol. 96(1), pages 198-210.
    3. Mary Thuo & Alexandra Bell & Boris Bravo-Ureta & Michée Lachaud & David Okello & Evelyn Okoko & Nelson Kidula & Carl Deom & Naveen Puppala, 2014. "Effects of social network factors on information acquisition and adoption of improved groundnut varieties: the case of Uganda and Kenya," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(3), pages 339-353, September.
    4. repec:eee:labeco:v:48:y:2017:i:c:p:23-34 is not listed on IDEAS
    5. Silva, José I. & Vall-Castello, Judit, 2012. "Why Are So Many Disabled Individuals Not Working in Spain? A Job Search Approach," IZA Discussion Papers 6317, Institute for the Study of Labor (IZA).
    6. Pilar García-Gómez & Sergi Jiménez-Martín & Judit Vall Castelló, 2014. "Financial Incentives, Health, and Retirement in Spain," NBER Chapters,in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, pages 455-495 National Bureau of Economic Research, Inc.
    7. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche & Yann Videau, 2016. "An evaluation of the 1987 French Disabled Workers Act: Better paying than hiring," Working Papers hal-01292132, HAL.
    8. Thomas Barnay, 2016. "Health, work and working conditions: a review of the European economic literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(6), pages 693-709, July.
    9. Jose I. Silva & Judit Vall-Castello, 2013. "Partial Disability System and Labor Market Adjustment: The Case of Spain," Upjohn Working Papers and Journal Articles 13-201, W.E. Upjohn Institute for Employment Research.
    10. 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.
    11. repec:spr:series:v:8:y:2017:i:1:d:10.1007_s13209-017-0154-0 is not listed on IDEAS
    12. Eva Frutos & Judit Castello, 2015. "Equal health, equal work? The role of disability benefits in employment after controlling for health status," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 329-340, April.

    More about this item

    Keywords

    Disability benefits; Employment promotion; Policy evaluation;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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