| Publication type: | Working paper – expertise – study |
| Title: | Disability insurance benefits and labor supply choices : evidence from a discontinuity in benefit awards |
| Authors: | Müller, Tobias Boes, Stefan |
| et. al: | No |
| Extent: | 39 |
| Issue Date: | 2016 |
| Series: | MPRA Paper |
| Series volume: | 70957 |
| Publisher / Ed. Institution: | Munich Personal RePEc Archive |
| Language: | English |
| Subject (DDC): | 360: Social problems and social insurance |
| Abstract: | This paper explores the effects of disability insurance (DI) benefits on the labor market decision of existing DI beneficiaries using a fuzzy regression discontinuity (RD) design. We identify the effect of DI benefits on the decision of working full-time, part-time or staying out of the labor force by exploiting a discontinuity in the DI benefit award rate above the age of 55. Overall, our results suggest that the Swiss DI system creates substantial lock-in effects which heavily influence the labor supply decision of existing beneficiaries: the benefit receipt increases the probability of working part-time by about 41%-points, decreases the probability of working full-time by about 42%-points but has little or no effects on the probability of staying out of the labor force for the average beneficiary. Therefore, DI benefits induce a shift in the labor supply of existing beneficiaries in the sense that they reduce their work intensity from working full-time to part-time which adds a possible explanation for the low DI outflow observed all across the OECD. |
| URI: | https://mpra.ub.uni-muenchen.de/70957/1/MPRA_paper_70957 https://digitalcollection.zhaw.ch/handle/11475/18753 |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Center for Energy and Environment (CEE) |
| Appears in collections: | Publikationen School of Management and Law |
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