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Author: | Karlström, A. Palme, M. Svensson, I. |
Title: | The employment effect of stricter rules for eligibility for DI: Evidence from a natural experiment in Sweden |
Journal: | Journal of Public Economics
2008 : OCT, VOL. 92:10-11, p. 2071-2082 |
Index terms: | employment disability insurance early retirement Scandinavia Nordic countries Sweden |
Language: | eng |
Abstract: | This study deals with the effect of a reform of the Swedish disability insurance (DI) program through which the special eligibility rules for workers in the age group 60 to 64 were abolished. First, a differences-in-differences approach is used to study changes in the disability take-up as compared to the age group 55 to 59. Then, a similar approach is used to study to what extent the employment effect of the reform is "crowded out" by an increase in the utilization of the sickpay insurance (SI) and/or the unemployment insurance (UI). In an extended analysis, the effect of firm closure on employment and the utilization of different labour market insurance programs in different age groups before and after the reform is explored. |
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