Return-to-Work Policies and Labor Supply in Disability Insurance Programs
AbstractReturn-to-work policies in disability insurance (DI) programs allow beneficiaries to collect a portion of their benefits while working. I investigate whether a large increase in incentives to work in a return-to-work policy could induce benefit recipients to increase their labor supply. I quantify the effects on earnings and labor force participation using a sharp discontinuity in the induced incentives to work at the month of the policy change in a DI program in Canada. Using administrative data, I document that large incentives to work could induce beneficiaries to increase their labor supply both in intensive and extensive margins.
CitationZaresani, Arezou. 2018. "Return-to-Work Policies and Labor Supply in Disability Insurance Programs." AEA Papers and Proceedings, 108: 272-76. DOI: 10.1257/pandp.20181047
- G22 Insurance; Insurance Companies; Actuarial Studies
- H55 Social Security and Public Pensions
- J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
- J22 Time Allocation and Labor Supply
- J13 Fertility; Family Planning; Child Care; Children; Youth