Arbeitspapier
How financial incentives induce disability insurance recipients to return to work
Disability Insurance (DI) programs have long been criticized by economists for apparent work disincentives. Some countries have recently modified their programs such that DI recipients are allowed to keep some of their benefits if they return to work, and other countries are considering similar return-to-work policies. However, there is little empirical evidence of the effectiveness of programs that incentivize the return to work by DI recipients. Using a local randomized experiment that arises from a sharp discontinuity in DI policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to work. We find that many DI recipients have considerable capacity to work that can be effectively induced by providing financial work incentives. We also show that providing work incentives to DI recipients may both increase their disposable income and reduce program costs. Our findings also suggest that targeted policies may be the most effective in encouraging DI recipients to return to work.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 6702
- Klassifikation
-
Wirtschaft
National Government Expenditures and Welfare Programs
Social Security and Public Pensions
Health: Government Policy; Regulation; Public Health
Labor Force and Employment, Size, and Structure
- Thema
-
disability insurance
financial incentives
labor supply
regression discontinuity design
Erwerbsunfähigkeitsrente
Arbeitsangebot
Ökonomischer Anreiz
Berufliche Integration
Test
Norwegen
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kostøl, Andreas Ravndal
Mogstad, Magne
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kostøl, Andreas Ravndal
- Mogstad, Magne
- Institute for the Study of Labor (IZA)
Entstanden
- 2012
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