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Norwegian

Job Loss and Disability Insurance

Link to article:

[DOI] [PDF]

Authors:

Bratsberg, Bernt, Elisabeth Fevang and Knut Røed

Year:

2013

Reference:

Labour Economics

Vol 24, 137-150

Summary

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 em-ployment opportunities. For men, we estimate that job loss more than doubles the risk of perma-nent disability retirement and accounts for one quarter of new disability insurance claims. Firm profitability and tightness of the local labor market also significantly affect employees’ likelihood of disability program entry, and the adverse effects of displacement grow stronger when local labor market conditions deteriorate.

JEL:

H55, I12, I38, J63, J65

Keywords:

Disability; Displacement; Social Insurance; Employment Opportunities

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway