The Employment Effect of Stricter Rules for Eligibility for DI: Evidence from a Natural Experiment in Sweden
We study the effect of a reform of the Swedish disability insurance (DI) program whereby the special eligibility rules for workers in the age group 60 to 64 were abolished. First, we use a differences-in-differences approach to study changes in the disability take-up as compared to the age group 55 to 59. Then, we use a similar approach to study to what extent the employment effect of the reform is "crowded out" by an increase in the utilization of the sickpay insurance (SI) and/or the unemployment insurance (UI). In an extended analysis, we study the effect of firm closure on employment and the utilization of different labor market insurance programs in different age groups before and after the reform.
|Date of creation:||11 Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden|
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- Palme, Mårten & Svensson, Ingemar, 2001.
"Income Security Programs and Retirement in Sweden,"
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NBER Working Papers
6137, National Bureau of Economic Research, Inc.
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- Palme, Mårten & Svensson, Ingemar, 1997. "Social Security, Occupational Pensions, and Retirement in Sweden," SSE/EFI Working Paper Series in Economics and Finance 184, Stockholm School of Economics.
- repec:ebl:ecbull:v:10:y:2003:i:3:p:1-7 is not listed on IDEAS
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NBER Working Papers
8841, National Bureau of Economic Research, Inc.
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- Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
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