Intergenerational Spillovers in Disability Insurance

Gordon Dahl and Anne Gielen

American Economic Journal: Applied Economics, 2021, vol. 13, issue 2, 116-50

Abstract: Using a 1993 Dutch policy reform and a regression discontinuity design, we find children of parents whose disability insurance (DI) eligibility was reduced are 11 percent less likely to participate in DI themselves, do not alter their use of other government programs, and earn 2 percent more as adults. The reduced transfers and increased taxes of children account for 40 percent of the fiscal savings relative to parents in present discounted value terms. Moreover, children of treated parents complete more schooling, have a lower probability of serious criminal arrests and incarceration, and take fewer mental health drugs as adults.

JEL-codes: H53 I12 I38 J14 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (15)

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Related works:
Working Paper: Intergenerational Spillovers in Disability Insurance (2018)
Working Paper: Intergenerational Spillovers in Disability Insurance (2018)
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DOI: 10.1257/app.20190544

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