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Early Interventions and Disability Insurance: Experience from a Field Experiment

Author

Listed:
  • Engström, Per

    (Uppsala University)

  • Hägglund, Pathric

    (SOFI, Stockholm University)

  • Johansson, Per

    (Uppsala University)

Abstract

This paper estimates the effects of early interventions in the Swedish sickness insurance system. The aim of the interventions is to screen and, further to, rehabilitate sick listed individuals. We find that the early interventions – in contrast to what is expected – increase the inflow into disability benefits by around 20 percent. In order to explain the results, we develop a simple theoretical model based on asymmetric information of the health status. The model predicts that the treatment effect is larger for individuals with low incentives to return to work. In order to test this prediction we estimate effects for sick listed employed and unemployed separately. Consistent with the model's prediction, we find that the effect is larger for the unemployed than for the employed.

Suggested Citation

  • Engström, Per & Hägglund, Pathric & Johansson, Per, 2012. "Early Interventions and Disability Insurance: Experience from a Field Experiment," IZA Discussion Papers 6553, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6553
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    References listed on IDEAS

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    11. Lex Borghans & Anne C. Gielen & Erzo F. P. Luttmer, 2014. "Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 34-70, November.
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    Cited by:

    1. Anna Jędrzychowska, 2022. "A Bridge Life Insurance for Households—Diagnosis and Motives," Risks, MDPI, vol. 10(4), pages 1-21, April.
    2. Forslund, Anders, 2019. "Employment outcomes and policies in Sweden during recent decades," Working Paper Series 2019:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Arni, Patrick, 2012. "Kausale Evaluation von Pilotprojekten: Die Nutzung von Randomisierung in der Praxis," IZA Standpunkte 52, Institute of Labor Economics (IZA).
    4. 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.
    5. Kai Rehwald & Michael Rosholm & Bénédicte Rouland, 2015. "Does Activating Sick-Listed Workers Work? Evidence from a Randomized Experiment," Working Papers hal-01228454, HAL.
    6. Jing Jian Xiao & Chunsheng Tao, 2020. "Consumer finance/household finance: the definition and scope," China Finance Review International, Emerald Group Publishing Limited, vol. 11(1), pages 1-25, June.
    7. Aakvik, Arild & Holmås, Tor Helge & Kjerstad, Egil, 2015. "Prioritization and the elusive effect on welfare – A Norwegian health care reform revisited," Social Science & Medicine, Elsevier, vol. 128(C), pages 290-300.
    8. Rehwald, Kai & Rosholm, Michael & Rouland, Bénédicte, 2018. "Labour market effects of activating sick-listed workers," Labour Economics, Elsevier, vol. 53(C), pages 15-32.
    9. Nina Granqvist & Pathric Hägglund & Stina Jakobsson, 2017. "Caseworkers’ attitudes: Do they matter?," Empirical Economics, Springer, vol. 52(4), pages 1271-1288, June.

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    More about this item

    Keywords

    monitoring; screening; vocation rehabilitation; disability insurance; sickness insurances; unemployment insurance; randomized experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • 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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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