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Estimating the Impact of Experience Rating on the Inflow into Disability Insurance in the Netherlands

Pierre Koning ()

No 05-07, Working Papers from Utrecht School of Economics

Abstract: This paper examines the effects of experience rating on the inflow into disability insurance (DI) in the Netherlands, using unique longitudinal administrative data from the social benefitadministration. We follow a difference-in-differences approach to identify the impact of changes in DI premiums. Due to unawareness of the experience rating system, employers seem to have been triggered to increase preventative activities, once they have experienced increases in DI premium. We find this impact to be substantial, amounting to a 15% reduction of the DI inflow.

Keywords: experience rating; disability insurance; panel data (search for similar items in EconPapers)
Date: 2005-02
New Economics Papers: this item is included in nep-eec, nep-hea, nep-ias and nep-pbe
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Working Paper: Estimating the impact of experience rating on the inflow into disability insurance in the Netherlands (2004) Downloads
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