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Is Recipiency of Disability Pension Hereditary?

  • Bratberg, Espen

    ()

    (University of Bergen)

  • Nilsen, Øivind Anti

    ()

    (Norwegian School of Economics)

  • Vaage, Kjell

    ()

    (University of Bergen)

This paper addresses whether children's exposure to parents receiving disability benefits induces a higher probability of receiving such benefits themselves. Most OECD countries experience an increasing proportion of the working-age population receiving permanent disability benefits. Using data from Norway, a country where around 10% of the working-age population rely on disability benefits, we find that the amount of time that children are exposed to their fathers receiving disability benefits affects their own likelihood of receiving benefits positively. This finding is robust to a range of different specifications, including family fixed effects.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6508.

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Length: 40 pages
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6508
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  1. Espen Bratberg & Tor Helge Holmås & Øystein Thøgersen, 2004. "Assessing the effects of an early retirement program," Journal of Population Economics, Springer, vol. 17(3), pages 387-408, 08.
  2. Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Markus Ja�ntti & Tor Eriksson & Eva O�sterbacka, 2007. "Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons," Economic Journal, Royal Economic Society, vol. 117(519), pages C72-C92, 03.
  3. Edmark, Karin & Hanspers, Kajsa, 2011. "Is welfare dependency inherited? Estimating the causal welfare transmission effects using Swedish sibling data," Working Paper Series 2011:25, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Sandra E. Black & Paul J. Devereux, 2010. "Recent Developments in Intergenerational Mobility," NBER Working Papers 15889, National Bureau of Economic Research, Inc.
  5. Rege, Mari & Telle, Kjetil & Votruba, Mark, 2009. "Social Interaction Effects in Disability Pension Participation: Evidence from Plant Downsizing," UiS Working Papers in Economics and Finance 2009/30, University of Stavanger.
  6. Øivind Anti Nilsen & Kjell Vaage & Arild Aakvik & Karl Jacobsen, 2012. "Intergenerational Earnings Mobility Revisited: Estimates Based on Lifetime Earnings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(1), pages 1-23, 03.
  7. Oscar A. Mitnik, 2007. "Intergenerational transmission of welfare dependency: The effects of length of exposure," Working Papers 0715, University of Miami, Department of Economics.
  8. David H. Autor & Mark G. Duggan, 2003. "The Rise In The Disability Rolls And The Decline In Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 157-205, February.
  9. Bound, John, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," American Economic Review, American Economic Association, vol. 79(3), pages 482-503, June.
  10. Lindahl, Lena, 2002. "Do birth order and family size matter for intergenerational income mobility? Evidence from Sweden," Working Paper Series 5/2002, Swedish Institute for Social Research.
  11. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
  12. Sandra E. Black & Paul G. Devereux & Kjell G. Salvanes, 2004. "The More the Merrier? The Effect of Family Composition on Children's Education," NBER Working Papers 10720, National Bureau of Economic Research, Inc.
  13. David H. Autor & Mark G. Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 71-96, Summer.
  14. Tyra Ekhaugen, 2009. "Extracting the causal component from the intergenerational correlation in unemployment," Journal of Population Economics, Springer, vol. 22(1), pages 97-113, January.
  15. Chen, Susan & van der Klaauw, Wilbert, 2008. "The work disincentive effects of the disability insurance program in the 1990s," Journal of Econometrics, Elsevier, vol. 142(2), pages 757-784, February.
  16. Marianne E. Page & Ann Huff Stevens, 2004. "The Economic Consequences of Absent Parents," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
  17. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute for the Study of Labor (IZA).
  18. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
  19. Espen Bratberg & Oivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, 09.
  20. Marianne E. Page & Ann Huff Stevens, 2002. "Will You Miss Me When I Am Gone? The Economic Consequences of Absent Parents," NBER Working Papers 8786, National Bureau of Economic Research, Inc.
  21. John V. Pepper, 2000. "The Intergenerational Transmission Of Welfare Receipt: A Nonparametric Bounds Analysis," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 472-488, August.
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