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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- Marten Palme & Ingemar Svensson, 1997.
"Social Security, Occupational Pensions, and Retirement in Sweden,"
NBER Working Papers
6137, National Bureau of Economic Research, Inc.
- Marten Palme & lngemar Svensson, 1999. "Social Security, Occupational Pensions, and Retirement in Sweden," NBER Chapters, in: Social Security and Retirement around the World, pages 355-402 National Bureau of Economic Research, Inc.
- 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.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
"How Much Should We Trust Differences-In-Differences Estimates?,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 119(1), pages 249-275.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
- Palme, Mårten & Svensson, Ingemar, 2001.
"Income Security Programs and Retirement in Sweden,"
SSE/EFI Working Paper Series in Economics and Finance
422, Stockholm School of Economics.
- Campolieti, Michele, 2002. "Disability and the labor force participation of older men in Canada," Labour Economics, Elsevier, vol. 9(3), pages 405-432, July.
- Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
- Eklöf, Matias & Hallberg, Daniel, 2004. "Private Alternatives and Early Retirement Programs," Working Paper Series 2004:5, Uppsala University, Department of Economics.
- 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.
- repec:ebl:ecbull:v:10:y:2003:i:3:p:1-7 is not listed on IDEAS
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