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Do Partial Disability Pensions Close the Earnings Gap?

Author

Listed:
  • Begoña Cueto

    () (Universidad de Oviedo)

  • Miguel A. Malo

    () (Universidad de Salamanca)

Abstract

In this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work at a different occupation after the disability’s onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater although they receive greater benefits.

Suggested Citation

  • 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.
  • Handle: RePEc:hpe:journl:y:2016:v:216:i:1:p:103-126
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    disability pensions; earnings losses; older workers.;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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