Great Recession and Disability Insurance in Spain
Arnau Juanmarti Mestres and
Judit Vall Castello ()
Authors registered in the RePEc Author Service: Sergi Jimenez-Martin ()
No 2017-08, Working Papers from FEDEA
In this paper, we exploit the strong incidence of the Great Recession in Spain to estimate the effect of economic conditions on participation in Disability Insurance (DI). Using individual panel data, we show that increases in the local unemployment rate are associated with a reduction in the individual probability to enter the DI program during the Great Recession in Spain. Using aggregate data on applications, we show that this procyclical behavior of DI awards comes from an increase in the proportion of applications that are denied. Thus, contrary to the previous literature that has extensively reported a countercyclical behavior of DI participation, our results provide new evidence that, in periods of extremely recessionary conditions, DI participation may turn procyclical.
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Journal Article: Great Recession and disability insurance in Spain (2019)
Working Paper: Great Recession and disability insurance in Spain (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:fda:fdaddt:2017-08
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