%0 Report %A Fevang, Elisabeth %A Hardoy, Inés %A Røed, Knut %T Getting Disabled Workers Back to Work: How Important Are Economic Incentives? %D 2013 %8 2013 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 7137 %U https://www.iza.org/publications/dp7137 %X 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. %K hazard rate models %K rehabilitation %K temporary disability %K labor supply