Earnings, Disposable Income, and Consumption of Allowed and Rejected Disability Insurance Applicants

Andreas Kostøl and Magne Mogstad

No 8893, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Two key questions in thinking about the size and growth of the disability insurance program are to what extent it discourages work, and how valuable the insurance is to individuals and families. These questions motivate our paper. We begin by describing the earnings, disposable income and consumption of awarded and rejected DI applicants, before and after the disability onset and the allowance decision. Next, we discuss how these descriptive results can be interpreted through the lens of alternative empirical approaches. Our analysis uses a Norwegian population panel data set with detailed information about every individual and household.

Keywords: benefit substitution; labor supply; disability insurance; disposable income (search for similar items in EconPapers)
JEL-codes: H53 I38 J62 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2015-02
New Economics Papers: this item is included in nep-ias and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published - published in: American Economic Review, 2015, 105 (5), 137–141

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Related works:
Journal Article: Earnings, Disposable Income, and Consumption of Allowed and Rejected Disability Insurance Applicants (2015)
Working Paper: Earnings, disposable income, and consumption of allowed and rejected disability insurcance applicants (2015)
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