AN ANALYSIS OF DURATION ON THE DISABILITY SUPPORT PENSION PROGRAM*

Lixin Cai

Australian Economic Papers, 2006, vol. 45, issue 2, 106-126

Abstract: The paper examines the factors that determine the duration on the Disability Support Pension (DSP) program using administrative data. We estimate two models based on two competing assumptions: the first model takes the standard assumption in duration models that all recipients will eventually leave the program. The second one takes into account the possibility that there may be some recipients who will never recover from their disabilities and hence not leave the program. Both models indicate that female recipients, recipients who enter DSP at a very young or very old age, recipients with a partner on income support, and recipients who transfer from unemployment benefits have the potential of a longer DSP duration.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:45:y:2006:i:2:p:106-126

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