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Do Partial Disability Pensions Close the Earnings Gap?

Begoña Cueto () and Miguel Malo ()
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Begoña Cueto: Universidad de Oviedo

Hacienda Pública Española / Review of Public Economics, 2016, vol. 216, issue 1, 103-126

Abstract: In this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work at a different occupation after the disability’s onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater although they receive greater benefits.

Keywords: disability pensions; earnings losses; older workers. (search for similar items in EconPapers)
JEL-codes: H24 H55 J14 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Do partial disability pensions close the earnings gap? (2014) Downloads
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Handle: RePEc:hpe:journl:y:2016:v:216:i:1:p:103-126