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Unemployed or Disabled? Disability Screening and Labor Market Outcomes of Youths

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Abstract

This paper examines the effect of being granted temporary disability insurance (TDI), as opposed to a non-health related benefit, on later labor market outcomes of youths who are seeking temporary income support from the state. In Norway, there has been a development over time towards a more lenient screening to TDI, and this development has been more pronounced in some municipalities than in others. Using local screening leniency as an instrument for TDI receipt, I find that being granted TDI benefits significantly reduces later labor market attachment of youths whose benefit receipt would differ according to their municipality of residence, and the year of entry to the benefit system.

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  • Schreiner, Ragnhild C., 2019. "Unemployed or Disabled? Disability Screening and Labor Market Outcomes of Youths," Memorandum 5/2019, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2019_005
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    Cited by:

    1. Andersen, Asbjørn Goul & Markussen, Simen & Røed, Knut, 2019. "Local labor demand and participation in social insurance programs," Labour Economics, Elsevier, vol. 61(C).
    2. Julian Vedeler Johnsen & Kjell Vaage & Alexander Willén, 2022. "Interactions in Public Policies: Spousal Responses and Program Spillovers of Welfare Reforms [‘The impact of age pension eligibility age on retirement and program dependence: Evidence from an Austr," The Economic Journal, Royal Economic Society, vol. 132(642), pages 834-864.

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    More about this item

    Keywords

    Social insurance; disability screening; youth unemployment; program evaluation;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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