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Labour Supply and Welfare Effects of Disability Insurance: A Survey

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  • Chiara Dal Bianco

    (University of Padua)

Abstract

This paper provides an overview of the labour supply disincentive and the insurance effect of public disability insurance (DI) programmes targeted to permanently disabled adults. It builds on previous survey papers to review the empirical findings on the direction and magnitude of the DI effects on labour market participation. It particularly focuses on the consequences of altering specific parameters of the DI schemes, such as benefit amount, screening stringency and return-to-work incentives. Finally, it surveys the recent literature investigating the level of insurance against work-limiting health impairments provided by DI programmes and the value of DI for beneficiaries. This literature is of particular relevance in a period in which many countries are facing the challenge of reforming DI schemes to guarantee their sustainability.

Suggested Citation

  • Chiara Dal Bianco, 2019. "Labour Supply and Welfare Effects of Disability Insurance: A Survey," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(1), pages 161-189, March.
    • Handle: RePEc:spr:italej:v:5:y:2019:i:1:d:10.1007_s40797-019-00086-z
    DOI: 10.1007/s40797-019-00086-z
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    Cited by:

    1. Tunga Kantarcı & Jan‐Maarten van Sonsbeek & Yi Zhang, 2023. "The heterogeneous impact of stricter criteria for disability insurance," Health Economics, John Wiley & Sons, Ltd., vol. 32(9), pages 1898-1920, September.
    2. Sylvain Chareyron & Naomie Mahmoudi, 2022. "The effects of disability benefits on the employment of low-skilled youth: Evidence from France," Erudite Working Paper 2022-09, Erudite.
    3. Jack Britton & Eric French, 2020. "Health and Employment amongst Older Workers," Fiscal Studies, John Wiley & Sons, vol. 41(1), pages 221-250, March.

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    More about this item

    Keywords

    Disability insurance; Labour supply; Health; Welfare;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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