Intergenerational Spillovers in Disability Insurance

Gordon Dahl and Anne Gielen

No 24296, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using a 1993 Dutch policy reform and a regression discontinuity design, we find children of parents whose disability insurance (DI) eligibility was reduced are 11% less likely to participate in DI themselves, do not alter their use of other government programs, and earn 2% more as adults. The reduced transfers and increased taxes of children account for 40% of the fiscal savings relative to parents in present discounted value terms. Moreover, children of treated parents complete more schooling, have a lower probability of serious criminal arrests and incarceration, and take fewer mental health drugs as adults.

JEL-codes: H53 I38 J62 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-eur, nep-ias and nep-lab
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Published as Gordon B. Dahl & Anne C. Gielen, 2021. "Intergenerational Spillovers in Disability Insurance," American Economic Journal: Applied Economics, American Economic Association, vol. 13(2), pages 116-150, April.

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Related works:
Journal Article: Intergenerational Spillovers in Disability Insurance (2021)
Working Paper: Intergenerational Spillovers in Disability Insurance (2018)
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