Article2019

Too sick to work, too healthy to qualify: a cross-country analysis of the effect of changes to disability benefits

Natasja Koitzsch Jensen · Henrik Brønnum‐Hansen · Ingelise Andersen · Karsten Thielen · Ashley McAllister · Bo Burström +3 more

31 citations0/0 files storedJournal of Epidemiology & Community Health

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Retirement, Disability, and Employment Social Policy and Reform Studies Employment and Welfare Studies

Abstract

BACKGROUND: Denmark and Sweden have implemented reforms that narrowed disability benefit eligibility criteria. Such reforms in combination with increasing work demands create a pincer movement where in particular those with moderate health problems might be unable to comply with work demands, but still not qualify for permanent disability benefits, ending up with temporary means-tested or no benefits. This paper examines whether this actually happened before and after the reforms. METHODS: The Survey of Health, Ageing and Retirement in Europe (SHARE) study waves 1-2 and 4-6 in Denmark and Sweden for the age group 50-59 years (N=5384) was used to analyse changes in employment rates and benefits among people with different levels of health before, during and after disability benefit reforms. Interaction between time and health in relation to employment versus permanent or temporary benefits was used as a criterion for whether our hypotheses was confirmed. RESULTS: Overall, employment rates have increased in the age group, but only among the healthy. The OR for receiving temporary or no benefits increased from 1.25 (95% CI: 0.81 to 1.90) before to 1.73 (95% CI: 1.14 to 2.61) after policy reforms for the 29% with moderate health problems and from 2.89 (95% CI: 1.66 to 5.03) to 6.71 (95% CI: 3.94 to 11.42) among the 11% with severe health problems. The interaction between time and health was statistically significant (p<0.001). CONCLUSION: People with impaired health and workability are forced into a life with temporary means-tested or no benefits when pressed by rising work demands and stricter disability benefit eligibility criteria.

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References

2016Sixth European Working Conditions Survey – Overview Report 2008Unemployment and retirement and ill-health: a cross-sectional analysis across European countries 2015Activation and active labour market policies in OECD countries: stylised facts and evidence on their effectiveness 2008Ascertaining late‐life depressive symptoms in Europe: an evaluation of the survey version of the EURO‐D scale in 10 nations. The SHARE project 2005Retirement on grounds of ill health 2016The influence of poor health on competing exit routes from paid employment among older workers in 11 European countries 2014Activation and Active Labour Market Policies in OECD Countries: Stylized Facts and Evidence on their Effectiveness 2010To what extent have relaxed eligibility requirements and increased generosity of disability benefits acted as disincentives for employment? A systematic review of evidence from countries with well-developed welfare systems

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2020Disability and public health research in Australia 2020Inequalities in extending working lives beyond age 60 in Canada, Denmark, Sweden and England—By gender, level of education and health 2020What is the effect of changing eligibility criteria for disability benefits on employment? A systematic review and meta-analysis of evidence from OECD countries

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