The Effect of Plant Downsizing on Disability Pension Utilization

Mari Rege, Kjetil Telle and Mark Votruba

Journal of the European Economic Association, 2009, vol. 7, issue 4, 754-785

Abstract: We investigate the impact of plant downsizing on disability pension utilization in Norway. Plant downsizing substantially increases the disability entry rate of workers in affected plants. Workers originally employed in plants that downsized by more than 60% between 1995 and 2000 were 24% more likely to utilize disability pensions in 2001 than comparable workers in non-downsized plants. We also estimate significant effects of downsizing on future earnings and mortality, which suggest that the increase in disability participation could be driven by an adverse effect of downsizing on the economic opportunities or the health of affected workers. (JEL: H55, I12, I38, J63, J65) (c) 2009 by the European Economic Association.

JEL-codes: H55 I12 I38 J63 J65 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (86)

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Working Paper: The Effect of Plant Downsizing on Disability Pension Utilization (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:tpr:jeurec:v:7:y:2009:i:4:p:754-785

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