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Disability in the Welfare State: An Unemployment Problem in Disguise?

Sammendrag

Economies with low unemployment often have high disability rates. In Norway, the permanent disability insurance rolls outnumber registered unemployment by four to one. Based on administrative register data matched with firms’ financial statements and closure data collected from bankruptcy proceedings, we show that a large fraction of Norwegian disability insurance claims can be directly attributed to job displacement and other adverse shocks to employment opportunities. For men, we estimate that job loss more than doubles the risk of entry to permanent disability and that displacements account for fully 28 percent of all new disability insurance claims. We conclude that unemployment and disability insurance are close substitutes.

Om publikasjonen

Forfattere:

Bratsberg, Bernt, Elisabeth Fevang and Knut Røed

År:

2010

Serie:

Andre skrifter

JEL:

H55, I12, I38, J63, J65

Nøkkelord:

disability, displacement, social insurance, employment opportunities

Prosjekt:

1156 - Utstøting fra arbeidsmarkedet

Lenke:

[PDF]