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Act now: The effects of the 2008 Spanish disability reform

Author

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  • Matthew J. Hill
  • Jose I. Silva
  • Judit Vall Castello

Abstract

The 2008 reform of the Spanish disability system reduced the benefits for individuals who have a short contributory history relative to their age. It also unintentionally introduced an incentive for individuals to apply for disability in the present. We use a lifecycle model and an empirical analysis to understand the overall impact of the reform. Our baseline estimates suggest that men and women who were affected by the reform were 46% and 22% more likely to be on permanent partial disability following the reform, respectively, and 55% and 46% more likely to be on total disability, respectively.

Suggested Citation

  • Matthew J. Hill & Jose I. Silva & Judit Vall Castello, 2019. "Act now: The effects of the 2008 Spanish disability reform," Health Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 906-920, July.
  • Handle: RePEc:wly:hlthec:v:28:y:2019:i:7:p:906-920
    DOI: 10.1002/hec.3892
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    References listed on IDEAS

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    Cited by:

    1. René Böheim & Thomas Leoni, 2016. "Disability policies: Reform strategies in a comparative perspective," NBER Working Papers 22206, National Bureau of Economic Research, Inc.
    2. Judit Vall Castelló, 2017. "What happens to the employment of disabled individuals when all financial disincentives to work are abolished?," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 158-174, September.

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    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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