Tightening the Purse Strings: The Effect of Stricter DI Eligibility Criteria on Labor Supply

Stefan Staubli

University of St. Gallen Department of Economics working paper series 2009 from Department of Economics, University of St. Gallen

Abstract: This paper explores the labor supply effects of a large-scale policy change in the Austrian disability insurance program, which tightened eligibility criteria for men above a certain age. Using administrative data on the universe of Austrian private-sector employees, the results of difference-in-difference type regressions suggest a substantial and statistically significant decline in disability enrollment of 5-5.7 percentage points and a modest increase in employment of 1.4 to 2.7 percentage points. On the other hand, the policy change had important spillover effects into the unemployment and sickness insurance program. Specifically, the share of individuals receiving unemployment benefits increased by roughly 3 and the share receiving sickness insurance benefits by 0.6 percentage points.

Keywords: Disability Insurance; Eligibility Criteria; Labor Supply; Policy Reform (search for similar items in EconPapers)
JEL-codes: H53 H55 J21 J64 J68 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2009-11
New Economics Papers: this item is included in nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://ux-tauri.unisg.ch/RePEc/usg/dp2009/DP-0931-St.pdf (application/pdf)

Related works:
Working Paper: Tightening the Purse Strings: The Effect of Stricter DI Eligibility Criteria on Labor Supply (2009)
Working Paper: Tightening the purse strings: the effect of stricter DI eligibility criteria on labor supply (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2009:2009-31

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