TY  - RPRT
        AU  - Krekó, Judit
AU  - Prinz, Daniel
AU  - Weber, Andrea
        TI  - Take-up and Labor Supply Responses to Disability Insurance Earnings Limits
        PY  - 2022/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15377
        UR  - https://www.iza.org/index.php/publications/dp15377
        AB  - In most disability insurance programs beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. We develop a simple framework to evaluate this trade-off. We use a reduction in the earnings limit in Hungary to examine screening and labor supply responses. We find that the policy changed selection into the program modestly but reduced labor supply significantly. Viewed through the lens of our model, these findings suggest that the earnings threshold should be higher.
        KW  - earnings limit
KW  - policy reform
KW  - disability insurance
KW  - labor supply
        ER  -