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Unemployed or Disabled? Disability Screening and Labor Market Outcomes of Youths

Ragnhild C. Schreiner ()
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Ragnhild C. Schreiner: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway, https://www.sv.uio.no/econ/english/people/aca/ragnhcs/index.html

No 5/2019, Memorandum from Oslo University, Department of Economics

Abstract: This paper examines the effect of being granted temporary disability insurance (TDI), as opposed to a non-health related benefit, on later labor market outcomes of youths who are seeking temporary income support from the state. In Norway, there has been a development over time towards a more lenient screening to TDI, and this development has been more pronounced in some municipalities than in others. Using local screening leniency as an instrument for TDI receipt, I find that being granted TDI benefits significantly reduces later labor market attachment of youths whose benefit receipt would differ according to their municipality of residence, and the year of entry to the benefit system.

Keywords: Social insurance; disability screening; youth unemployment; program evaluation (search for similar items in EconPapers)
JEL-codes: C21 C26 H55 I18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-eur, nep-hea and nep-ias
Date: 2019-05-03
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