Work Disability, Health, and Incentive Effects
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.
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- Banks, James & Kapteyn, Arie & Smith, James P. & van Soest, Arthur, 2004.
"International Comparisons of Work Disability,"
IZA Discussion Papers
1118, Institute for the Study of Labor (IZA).
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- Arie Kapteyn & James P. Smith & Arthur van Soest, 2005.
"Self-reported Work Disability in the US and The Netherlands,"
Labor and Demography
- Arie Kapteyn & James P. Smith & Arthur van Soest, 2004. "Self-reported Work Disability in the US and The Netherlands," Working Papers 206, RAND Corporation Publications Department.
- 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.
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