Arbeitspapier

Why Do Temporary Workers Have Higher Disability Insurance Risks Than Permanent Workers?

Workers with fixed-term contracts typically have worse health than workers with permanent contracts. We show that these differences in health translate into a substantially higher (30%) risk of applying for disability insurance (DI) in the Netherlands. Using unique administrative data on health and labor market outcomes of all employees in the Netherlands, we decompose this differential into: (i) selection of workers types into fixed-term contracts; (ii) the causal impact of temporary work conditions on worker health; (iii) the impact of differential employer incentives to reintegrate ill workers; and (iv) the differential impact of labor market prospects on the decision to apply for DI benefits. We find that selection actually masks part of the DI risk premium, whereas the causal impact of temporary work conditions on worker health is limited. At the same time, the differences in employer commitment during illness and differences in labor market prospects between fixed-term and permanent workers jointly explain more than 80% of the higher DI risk.

Sprache
Englisch

Erschienen in
Series: Tinbergen Institute Discussion Paper ; No. TI 2022-024/V

Klassifikation
Wirtschaft
National Government Expenditures and Welfare Programs
Labor Economics Policies
Thema
Disability Insurance
Temporary Work
Employer Incentives
Worker Health

Ereignis
Geistige Schöpfung
(wer)
Koning, Pierre
Muller, Paul
Prudon, Roger
Ereignis
Veröffentlichung
(wer)
Tinbergen Institute
(wo)
Amsterdam and Rotterdam
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Koning, Pierre
  • Muller, Paul
  • Prudon, Roger
  • Tinbergen Institute

Entstanden

  • 2022

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