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Act now: The effects of the 2008 Spanish disability reform

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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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    Cited by:

    1. 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.
    2. René Böheim & Thomas Leoni, 2016. "Disability policies: Reform strategies in a comparative perspective," NBER Working Papers 22206, National Bureau of Economic Research, Inc.

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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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