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The employment effect of stricter rules for eligibility for DI: Evidence from a natural experiment in Sweden
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics (closed 20110301), Transport and Location Analysis (closed 20110301). (Transporter och lokaliseringsanalys)ORCID iD: 0000-0001-5290-6101
Department of Economics, Stockholm University.
Social Insurance Agency, Stockholm.
2008 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 92, no 10-11, 2071-2082 p.Article in journal (Refereed) Published
Abstract [en]

We study the effect of a reform of the Swedish disability insurance (DI) program whereby the special eligibility rules for workers in the age group 60 to 64 were abolished. First, we use a differences-in-differences approach to study changes in the disability take-up as compared to the age group 55 to 59. Then, we use a similar approach 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, we study the effect of firm closure on employment and the utilization of different labor market insurance programs in different age groups before and after the reform.

Place, publisher, year, edition, pages
Lausanne: Elsevier B.V. , 2008. Vol. 92, no 10-11, 2071-2082 p.
Keyword [en]
Disability insurance; Early retirement
National Category
Social Sciences Economics
URN: urn:nbn:se:kth:diva-9520DOI: 10.1016/j.jpubeco.2008.04.014ISI: 000261354600013ScopusID: 2-s2.0-53549129229OAI: diva2:235449

QC 20150727

Available from: 2009-09-16 Created: 2008-11-12 Last updated: 2015-07-27Bibliographically approved

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Transport and Location Analysis (closed 20110301)
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