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Work Disability, Health, and Incentive Effects

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  • Börsch-Supan, Axel

    () (Munich Center for the Economics of Aging (MEA))

Abstract

Disability insurance – the insurance against the loss of the ability to work – is a substantial part of social security expenditures in many countries. The enrolment rates in disability insurance vary strikingly across European countries and the US. This paper investigates the extent of, and the causes for, this variation, using data from SHARE, ELSA and HRS. We show that even after controlling for differences in the demographic structure and health status these differences remain. In turn, indicators of disability insurance generosity explain 75% of the cross-national variation. We conclude that country-specific disability insurance rules are a prime candidate to explain the observed cross-country variation in disability insurance enrolment.

Suggested Citation

  • Börsch-Supan, Axel, 2007. "Work Disability, Health, and Incentive Effects," MEA discussion paper series 07135, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  • Handle: RePEc:mea:meawpa:07135
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    References listed on IDEAS

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    1. Börsch-Supan, Axel, 2001. "Incentive Effects of Social Security Under an Uncertain Disability Option," Sonderforschungsbereich 504 Publications 01-42, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    2. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
    3. James Banks & Arie Kapteyn & James P. Smith & Arthur Van Soest, 2004. "International Comparisons of Work Disability," Working Papers WR-155, RAND Corporation.
    4. repec:cup:apsrev:v:98:y:2004:i:01:p:191-207_00 is not listed on IDEAS
    5. Agar Brugiavini & Tullio Jappelli & Guglielmo Weber, 2002. "The Survey on Health, Aging and Wealth," CSEF Working Papers 86, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    6. Arie Kapteyn & James P. Smith & Arthur Van Soest, 2004. "Self-reported Work Disability in the US and The Netherlands," Working Papers WR-206, RAND Corporation.
    7. F. Thomas Juster & Richard Suzman, 1995. "An Overview of the Health and Retirement Study," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages 7-56.
    8. Axel H. Boersch-Supan, 2001. "Incentive Effects of Social Security under an Uncertain Disability Option," NBER Chapters, in: Themes in the Economics of Aging, pages 281-310, National Bureau of Economic Research, Inc.
    9. Arie Kapteyn & James P. Smith & Arthur Van Soest, 2004. "Self-reported Work Disability in the US and The Netherlands," Working Papers 206, RAND Corporation.
    10. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, March.
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    Cited by:

    1. Thierry Debrand & Nicolas Sirven, 2009. "Quelles sont les motivations des départs à la retraite en Europe : situation personnelle, familiale, professionnelle, ou rôle de la protection sociale ?," Working Papers DT26, IRDES institut for research and information in health economics, revised Jun 2009.
    2. Michael D. Hurd & Pierre-Carl Michaud & Susann Rohwedder, 2008. "Using International Micro Data to Learn about Individuals' Responses to Changes in Social Insurance," Working Papers 626, RAND Corporation.

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