Work

Earnings, Disposable Income, and Consumption of Allowed and Rejected Disability Insurance Applicants

Year: 2015

Type: article

Abstract: Two key questions in thinking about the size and growth of the disability insurance program are to what extent it discourages work, and how valuable the insurance is to individuals and families. These questions motivate our paper. We begin by describing the earnings, disposable income and consumption of awarded and rejected DI applicants, before and after the disability onset and the allowance decision. Next, we discuss how these descriptive results can be interpreted through the lens of alternative empirical approaches. Our analysis uses a Norwegian population panel data set with detailed information about every individual and household.

Source: American Economic Review

DOI: 10.1257/aer.p20151063

Authors: Andreas Ravndal Kostøl, Magne Mogstad

Institutions: University of Bergen, University of Chicago

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty

Open Access status: green

Funder: Norges Forskningsråd