TY  - RPRT
        AU  - Koning, Pierre
AU  - Muller, Paul
AU  - Prudon, Roger
        TI  - Do Disability Benefits Hinder Work Resumption after Recovery?
        PY  - 2020/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13971
        UR  - https://www.iza.org/index.php/publications/dp13971
        AB  - While a large share of Disability Insurance recipients are expected to recover, outflow rates from temporary disability schemes are typically negligible. We estimate the disincentive effects of disability benefits on the response to a (mental) health improvement using administrative data on all Dutch disability benefit applicants. We compare those below the DI eligibility threshold with those above and find that disincentives significantly reduce work resumption after health improves. Approximately half of the response to recovery is offset by benefits. Structural labor supply model estimates suggest disincentive effects are substantially larger when the workers earnings capacity is fully restored.
        KW  - labor supply
KW  - mental health
KW  - disability insurance
KW  - health shocks
        ER  -