TY - RPRT AU - Fevang, Elisabeth AU - Hardoy, Inés AU - Røed, Knut TI - Getting Disabled Workers Back to Work: How Important Are Economic Incentives? PY - 2013/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7137 UR - https://www.iza.org/publications/dp7137 AB - 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. KW - hazard rate models KW - rehabilitation KW - temporary disability KW - labor supply ER -