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Estimating the impact of experience rating on the inflow into disability insurance in the Netherlands

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  • Pierre Koning

Abstract

This paper examines the effects of experience rating on the inflow into disability insurance (DI) in the Netherlands, using unique longitudinal administrative data from the Dutch social benefit administration for the years 2000-2002. This paper examines the effects of experience rating on the inflow into disability insurance (DI) in the Netherlands, using unique longitudinal administrative data from the Dutch social benefit administration for the years 2000-2002. We follow a difference-in-differences approach to identify the impact of changes in DI premiums. In particular, due to unawareness of the experience rating system, employers seem to have been triggered to increase preventative activities, once they have experienced increases in DI premium ('ex post incentives'). We find the impact of experience rating to be substantial, amounting to a 15% reduction of the inflow into DI. This finding is robust with respect to various alternative specification alternatives. We conclude that the decision of employers to increase preventative activities seems mainly an issue of being aware of the experience rating incentive.

Suggested Citation

  • Pierre Koning, 2004. "Estimating the impact of experience rating on the inflow into disability insurance in the Netherlands," CPB Discussion Paper 37, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:37
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    Cited by:

    1. Alois Guger, 2007. "WIFO-Weißbuch: Arbeitsmarktflexibilität und soziale Absicherung," WIFO Monatsberichte (monthly reports), WIFO, vol. 80(5), pages 469-481, May.
    2. Anja Deelen, 2005. "Adverse selection in disability insurance; empirical evidence for Dutch firms," CPB Discussion Paper 46, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Annemiek Vuren & Daniel Vuuren, 2007. "Financial Incentives in Disability Insurance in the Netherlands," De Economist, Springer, vol. 155(1), pages 73-98, March.
    4. Vikström, Johan, 2009. "The effect of employer incentives in social insurance on individual wages," Working Paper Series 2009:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Ulrike Famira-Mühlberger & Ulrike Huemer & Christine Mayrhuber, 2015. "Die Beschäftigungsquote Älterer im europäischen Vergleich," WIFO Studies, WIFO, number 58532, June.
    6. Annemiek Vuren & Daniel Vuuren, 2007. "Financial Incentives in Disability Insurance in the Netherlands," De Economist, Springer, vol. 155(1), pages 73-98, March.
    7. Anja Deelen, 2005. "Adverse selection in disability insurance; empirical evidence for Dutch firms," CPB Discussion Paper 46.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Pierre Koning & Daniel Van Vuuren, 2007. "Hidden Unemployment in Disability Insurance," LABOUR, CEIS, vol. 21(4‐5), pages 611-636, December.
    9. Pierre Koning & Daniel van Vuuren, 2006. "Hidden unemployment in disability insurance in the Netherlands; an empirical analysis based on employer data," CPB Discussion Paper 69, CPB Netherlands Bureau for Economic Policy Analysis.
    10. T. Everhardt & Ph. Jong, 2011. "Return to Work After Long Term Sickness," De Economist, Springer, vol. 159(3), pages 361-380, September.
    11. Christl, Michael & Kucsera, Dénes & Lorenz, Hanno, 2015. "Jung, älter, arbeitslos? Wie Ältere länger in Beschäftigung gehalten werden können, ohne die Jungen in die Arbeitslosigkeit zu treiben," EconStor Research Reports 119605, ZBW - Leibniz Information Centre for Economics.
    12. Gautier, Pieter A. & van der Klaauw, Bas, 2009. "Institutions and labor market outcomes in the Netherlands," Working Paper Series 2009:28, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    13. Christine Mayrhuber & Silvia Rocha-Akis, 2013. "Anreizsysteme zur Weiterbeschäftigung älterer Arbeitnehmerinnen und Arbeitnehmer," WIFO Studies, WIFO, number 46905, June.
    14. Alois Guger & Thomas Leoni, 2006. "Teilstudie 15: Arbeitsmarktflexibilität und soziale Absicherung," WIFO Studies, WIFO, number 27454, June.
    15. Stijn Baert & Bas van der Klaauw & Gijsbert van Lomwel, 2018. "The effectiveness of medical and vocational interventions for reducing sick leave of self‐employed workers," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 139-152, February.

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    More about this item

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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