IDEAS home Printed from https://ideas.repec.org/a/nse/ecosta/ecostat_2025_546_2.html

How Does the Probability of Benefiting From a Disability Pension Vary With Early Career Earned Income?

Author

Listed:
  • Anam Mohammad
  • Delphine Roy
  • Maxime Tô
  • Todor Tochev

Abstract

[eng] In this article, we analyse the links between earned income in the early years of an individual’s career, and the risk that they will become beneficiaries of a disability pension at different points in later life, using the inter-pension schemes sample (EIC, 2009-2017). For men, we identify a clear gradient: the risk of benefiting from a disability pension is 1.5 times greater than the median for the lowest income deciles, and 2.5 times lower for the top decile. This gradient, which is less pronounced for women, remains present even when controlling for socio-professional status and health parameters in the early career, although it is attenuated. Inequality with regard to disability is particularly high at the ages when disability remains relatively rare (between the ages of 40 and 50), and has become more pronounced among more recent generations of men. The probability that an individual will receive a disability pension at an early age thus appears to be a relevant indicator of health inequality.

Suggested Citation

  • Anam Mohammad & Delphine Roy & Maxime Tô & Todor Tochev, 2025. "How Does the Probability of Benefiting From a Disability Pension Vary With Early Career Earned Income?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 546, pages 11-37.
    • Handle: RePEc:nse:ecosta:ecostat_2025_546_2
    DOI: https://doi.org/10.24187/ecostat.2025.546.2131
    as

    Download full text from publisher

    File URL: https://www.insee.fr/en/statistiques/fichier/8642183/02_ES546_Mohammad_et-al_EN.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.24187/ecostat.2025.546.2131?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Meyer, Bruce D. & Mok, Wallace K.C., 2019. "Disability, earnings, income and consumption," Journal of Public Economics, Elsevier, vol. 171(C), pages 51-69.
    2. Gordon B. Dahl & Claus Thustrup Kreiner & Torben Heien Nielsen & Benjamin Ly Serena, 2024. "Understanding the Rise in Life Expectancy Inequality," The Review of Economics and Statistics, MIT Press, vol. 106(2), pages 566-575, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kárpáti, D.;, 2022. "Household Finance and Life-Cycle Economic Decisions under the Shadow of Cancer," Health, Econometrics and Data Group (HEDG) Working Papers 22/16, HEDG, c/o Department of Economics, University of York.
    2. Leila Bengali & Mary C. Daly & Olivia Lofton & Robert G. Valletta, 2021. "The Economic Status of People with Disabilities and Their Families since the Great Recession," The ANNALS of the American Academy of Political and Social Science, , vol. 695(1), pages 123-142, May.
    3. Jajtner, Katie & Wang, Yang, 2025. "The effects of earned income tax credits on intergenerational health mobility in the United States," Journal of Health Economics, Elsevier, vol. 103(C).
    4. Katie M. Jajtner & Sophie Mitra & Christine Fountain & Austin Nichols, 2020. "Rising Income Inequality Through a Disability Lens: Trends in the United States 1981–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 81-114, August.
    5. Bryan, Mark & Bryce, Andrew & Rice, Nigel & Roberts, Jennifer & Sechel, Cristina, 2022. "Exploring mental health disability gaps in the labour market: the UK experience during COVID-19," Labour Economics, Elsevier, vol. 78(C).
    6. Nicholas A. Jolly & Nikolaos Theodoropoulos, 2023. "Health shocks and spousal labor supply: an international perspective," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 973-1004, April.
    7. Charlene Marie Kalenkoski & Sabrina Wulff Pabilonia, 2023. "Parental disability and teenagers’ time allocation," Review of Economics of the Household, Springer, vol. 21(4), pages 1379-1407, December.
    8. Ralph, Kelcie & Morris, Eric A. & Kwon, Jaekyeong, 2022. "Disability, access to out-of-home activities, and subjective well-being," Transportation Research Part A: Policy and Practice, Elsevier, vol. 163(C), pages 209-227.
    9. Tianxin Pan & Michael Palmer & Ajay Mahal & Peter Annear & Barbara McPake, 2020. "The long‐run effects of noncommunicable disease shocks," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1549-1565, December.
    10. Seibold, Arthur & Seitz, Sebastian & Siegloch, Sebastian, 2022. "Privatizing Disability Insurance," CEPR Discussion Papers 17568, C.E.P.R. Discussion Papers.
    11. Hamish Low & Luigi Pistaferri, 2020. "Disability Insurance: Theoretical Trade‐Offs and Empirical Evidence," Fiscal Studies, John Wiley & Sons, vol. 41(1), pages 129-164, March.
    12. Di Meo, Giovanni & Eryilmaz, Onur, 2025. "The impacts of health shocks on household labor supply and domestic production," Journal of Health Economics, Elsevier, vol. 101(C).
    13. Gugushvili, Alexi & Grue, Jan & Finnvold, Jon Erik, 2025. "The effect of anti-discrimination legislation on individuals with disabilities in Nordic countries," Social Science & Medicine, Elsevier, vol. 383(C).
    14. Kárpáti, Daniel, 2023. "Essays in finance & health," Other publications TiSEM 5505e140-1f4d-4f61-a5a5-e, Tilburg University, School of Economics and Management.
    15. Sean Kiely & Dorothee Buehler & Ute Rink & Kristin Kiesel, 2023. "The effects of disability on households' economic livelihoods and poverty in Vietnam," TVSEP Working Papers wp-035, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    16. Ohto Kanninen & Petri Böckerman & Ilpo Suoniemi, 2026. "Income–Well‐Being Gradient in Sickness and Health," Health Economics, John Wiley & Sons, Ltd., vol. 35(3), pages 409-422, March.
    17. Beckmannshagen, Mattis & Koenig, Johannes, 2025. "Out for good: Transitory and persistent labor market effects of heterogeneous health shocks," Labour Economics, Elsevier, vol. 96(C).
    18. Atsuko Tanaka, 2021. "The effects of sudden health reductions on labor market outcomes: Evidence from incidence of stroke," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1480-1497, June.
    19. Anand, Priyanka & Dague, Laura & Wagner, Kathryn L., 2022. "The role of paid family leave in labor supply responses to a spouse's disability or health shock," Journal of Health Economics, Elsevier, vol. 83(C).
    20. O'Donnell, Owen, 2024. "Health and health system effects on poverty: A narrative review of global evidence," Health Policy, Elsevier, vol. 142(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nse:ecosta:ecostat_2025_546_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Veronique Egloff (email available below). General contact details of provider: https://edirc.repec.org/data/inseefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.