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What Drives Inflows Into Disability?: Evidence from Three OECD Countries: Australia, Switzerland, United Kingdom

  • Ana Llena-Nozal
  • Theodora Xenogiani

This paper investigates the dynamic effects of health shocks on labour market transitions to disability, employment and other non-employment pathways. It uses longitudinal data to estimate time discrete duration models for three countries: Australia, Switzerland and the United Kingdom. Both current and lagged health status are important predictors of exit to disability benefits and the effect of health problems varies by age group, education and income across countries. The results are robust to the inclusion of different socio-demographic variables and to instrumenting health status. Ce papier analyse les effets dynamiques des chocs de santé sur les transitions du marché du travail vers des prestations d’invalidité, l’emploi et d’autres voies de non-emploi. Il utilise des données longitudinales pour estimer des modèles de durée à temps discret pour trois pays: l’Australie, la Suisse et le Royaume Uni. L’état de santé courante et celui de la période précédente ont un impact important sur la probabilité des sorties vers les régimes d’invalidité, et l’effet des problèmes de santé varie avec l’âge, l’éducation et le revenu à travers les pays. Les résultats sont robustes à l’inclusion des variables sociodémographiques et à l’instrumentation de l’état de santé.

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File URL: http://dx.doi.org/10.1787/5kgg52gjg26b-en
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Paper provided by OECD Publishing in its series OECD Social, Employment and Migration Working Papers with number 117.

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Date of creation: 28 Mar 2011
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Handle: RePEc:oec:elsaab:117-en
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