Local Labor Demand and Participation in Social Insurance Programs

Asbjørn Goul Andersen, Simen Markussen and Knut Røed ()
Additional contact information
Asbjørn Goul Andersen: Ragnar Frisch Centre for Economic Research

No 12669, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Based on administrative data from Norway, we explore the "grey area" between the roles of unemployment- and temporary disability-insurances by examining how participation in these two program types is affected by local labor demand conditions. Local labor demand is identified by means of a shift-share instrumental variables strategy, where initial local industry-composition is interacted with sub-sequent national industry-specific employment fluctuations. Our results indicate that local labor demand has a large negative effect on the propensity to claim disability insurance, which, for some groups, is remarkably similar to its effect on the propensity to claim unemployment insurance. Based on this finding, we question whether it is meaningful to maintain a sharp distinction between these two programs.

Keywords: shift-share analysis; program substitution; disability insurance; unemployment (search for similar items in EconPapers)
JEL-codes: H55 J23 J58 J65 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2019-10
New Economics Papers: this item is included in nep-eur, nep-ias, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published - published in: Labour Economics, 2019, 61, 101767

Downloads: (external link)
https://docs.iza.org/dp12669.pdf (application/pdf)

Related works:
Journal Article: Local labor demand and participation in social insurance programs (2019)
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: https://EconPapers.repec.org/RePEc:iza:izadps:dp12669

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().