Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform

Lex Borghans · Anne C. Gielen · Erzo F.P. Luttmer

122 citations0/0 files storedAmerican Economic Journal Economic Policy

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Retirement, Disability, and Employment Labor market dynamics and wage inequality Gender, Labor, and Family Dynamics

Abstract

We exploit a cohort discontinuity in the stringency of Dutch disability reforms to estimate the effects of decreased DI (disability insurance) generosity on behavior of existing recipients. We find evidence of social support substitution: individuals on average offset €1.00 of lost DI benefits by collecting €0.30 more from other social assistance programs, but this benefit-substitution effect declines over time. Individuals also exhibit a rebound in earnings: earnings increase by € 0.62 on average per euro of lost DI benefits and this effect remains roughly constant over time. This is strong evidence of substantial remaining earnings capacity among long-term claimants of DI. (JEL I38, J14, J22, J28, J31)

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 122 citations exist upstream.

References

2003The Rise in the Disability Rolls and the Decline in Unemployment 2013Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt 1989The Health and Earnings of Rejected Disability Insurance Applicants 1980The Decline in Male Labor Force Participation 2000Does Unemployment Insurance Crowd out Spousal Labor Supply?2000Disability Insurance Benefits and Labor Supply 2011The Effect of Disability Insurance Receipt on Labor Supply 2007The work disincentive effects of the disability insurance program in the 1990s

Cited by

2021The Long-Run Effects of Childhood Insurance Coverage: Medicaid Implementation, Adult Health, and Labor Market Outcomes 2019Disability Benefits, Consumption Insurance, and Household Labor Supply 2018Can Fixed-term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain 2015The Rise and Fall of Disability Insurance Enrollment in the Netherlands 2016Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.