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| Author: | Rege, M. Votruba, M. Telle, K. |
| Title: | The effect of plant downsizing on disability pension utilization |
| Journal: | Journal of the European Economic Association
2009 : JUN, VOL. 7:4, p. 754-785 |
| Index terms: | norway disablement pensions |
| Language: | eng |
| Abstract: | This study examines the impact of plant downsizing on disability pension utilization in Norway. In affected plants, plant downsizing substantially increases the disability entry rate of workers. The results reveal that workers originally employed in plants that downsized by more than 60% between 1995 and 2000 were 24% more likely to utilize disability pensions in 2001 than comparable workers in non-downsized plants. The study also estimates significant effects of downsizing on future earnings and mortality. The increase in disability participation could be driven by an adverse effect of downsizing on the economic opportunities or the health of affected workers. |
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