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Author:Staubli, S.
Title:The impact of stricter criteria for disability insurance on labor force participation
Journal:Journal of Public Economics
2011 : OCT, VOL. 95: 9-10, p. 1223-1235
Index terms:disability insurance
labour supply
policy
Austria
unemployment
Freeterms:eligibility criteria
Language:eng
Abstract:This paper studies the effect of a major policy change in the Austrian disability insurance program, which tightened eligibility criteria for men above a specific age. Using administrative data of Austrian private-sector employees, the outcomes of difference-in-difference regressions imply a substantial and statistically significant diminishing in disability enrollment of 6 to 7.4 percentage points and an employment increase of 1.6 to 3.4 percentage points. However, the change had spillover effects into the unemployment and sickness insurance program. Precisely, the share of citizens receiving unemployment benefits increased by 3.5 to 3.9 percentage points, and the share receiving sickness insurance benefits, by roughly 0.7 percentage points.
SCIMA record nr: 275045
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