TY  - RPRT
        AU  - Haller, Andreas
AU  - Staubli, Stefan
        TI  - Measuring the Value of Disability Insurance from Take-Up Decisions
        PY  - 2026/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18769
        UR  - https://www.iza.org/publications/dp18769
        AB  - The central trade-off for designing Disability Insurance (DI) is between providing insurance to those in need while maintaining incentives to work. This paper develops a novel revealed-preference approach to identify the insurance value of DI benefits. We show that comparing the DI take-up response to a change in benefits versus a change in wages identifies the insurance value. Implementing our framework in Canada, we estimate that increasing DI benefits by $1 creates an additional disincentive cost of $0.60 but creates an insurance value of $2.20. Thus, our approach suggests that DI benefits are not overly generous in the Canadian context.
        KW  - disability insurance
KW  - take-up
KW  - benefits
KW  - policy reform
        ER  -