Economics at your fingertips  

Assessing the effects of disability insurance experience rating. The case of The Netherlands

Nynke de Groot and Pierre Koning ()

Labour Economics, 2016, vol. 41, issue C, 304-317

Abstract: Experience-rated disability insurance (DI) premiums are often advocated as a means to stimulate firms to reduce DI inflow and increase DI outflow. To assess the size of these intended effects of experience rating, this study provides an empirical analysis of the effects of DI experience rating in The Netherlands. We use a difference-in-difference approach with administrative matched firm- and worker data that exploits the removal of experience rating for small firms in 2003 and 2004. According to our results, removing experience rating caused an increase of DI inflow of about 7% for small firms, while DI outflow decreased by 12% as a result of the reform. We argue that these effects were largely confined to the first year of DI benefit receipt.

Keywords: Disability insurance; Experience rating; Differences-in-differences (search for similar items in EconPapers)
JEL-codes: H22 I12 C23 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Assessing the Effects of Disability Insurance Experience Rating: The Case of the Netherlands (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.labeco.2016.05.007

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-05-24
Handle: RePEc:eee:labeco:v:41:y:2016:i:c:p:304-317