TY  - RPRT
        AU  - Silva, José I.
AU  - Castello, Judit Vall
        TI  - Evaluating the Impact of a Reduction in the Generosity of Disability Benefits: The 2008 Spanish Reform
        PY  - 2012/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6482
        UR  - https://www.iza.org/publications/dp6482
        AB  - We evaluate the effects of a reduction in the generosity of disability benefits in Spain that occurred in 2008. The main objective of the reform was to reduce the amount of benefits for individuals that do not have a long contributory history as the reform introduced a disincentive to apply to the system if the individual does not have 35 years of effective contributions. Theoretical insights are gained with a life-cycle model with heterogeneous disabled workers. The model's simulations predict a reduction in the incentives to apply for disability benefits for partially disabled individuals who do not reach the 35 years of contributions. Diff-in-diff estimates are consistent with our model predictions.
        KW  - disability benefits reform
KW  - life-cycle model
KW  - policy evaluation
        ER  -