@TechReport{iza:izadps:dp7137, author={Fevang, Elisabeth and Hardoy, Inés and Røed, Knut}, title={Getting Disabled Workers Back to Work: How Important Are Economic Incentives?}, year={2013}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={7137}, url={https://www.iza.org/index.php/publications/dp7137}, abstract={We investigate the impacts of economic incentives on the duration and outcome of temporary disability insurance (TDI) spells. The analysis is based on a large quasi-experiment in Norway, with a complete overhaul of the TDI benefit system. Our findings show that the labor supply of TDI claimants responds to both the benefit-level and to the level of local labor demand. The estimated elasticity of the employment hazard with respect to the benefit-level is – 0.3. We also find that the level of TDI benefits significantly affects the transition rate to alternative social insurance programs such as permanent disability and unemployment.}, keywords={hazard rate models;rehabilitation;temporary disability;labor supply}, }