Decomposing Employment Trends of Disabled Workers

Pierre Koning; Heike Vethaak

doi:10.1515/bejeap-2021-0010

Decomposing Employment Trends of Disabled Workers

Pierre Koning^*
, Heike Vethaak

^*Corresponding author for this work

Economics

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

This paper estimates Age-Period-Cohort models on employment rates of Dutch Disability Insurance (DI) applicants. We find that the substantial decrease in employment between 1999 and 2013 is explained by year-of-Application cohort effects and that period effects are negligible. In turn, application cohort effects partly stem from increasing shares of applicants without permanent contracts. Changes in application cohort effects are largely confined to the years following two DI reforms that increased self-screening among workers. We next analyze changes in employment rates of awarded and rejected applicants and follow a Difference-in-Differences approach. Assuming common compositional cohort effects, we infer negligible effects of changes in benefit conditions.

Original language	English
Pages (from-to)	1217-1255
Number of pages	39
Journal	The B.E. Journal of Economic Analysis & Policy
Volume	21
Issue number	4
Early online date	19 Jul 2021
DOIs	https://doi.org/10.1515/bejeap-2021-0010
Publication status	Published - Oct 2021

Bibliographical note

Funding Information:
This research is sponsored by Instituut Gak. The authors are grateful to Patrick Hullegie for his indispensable work on the data. They also thank Nicole Maestas, Jan-Maarten van Sonsbeek, Eric French, Astrid Grasdal, Lawrence Katz, Marike Knoef, Carla van Deursen, Barend Barentsen and seminar participants at the Dutch Economists Day of 2019, the University of Bergen, the University of Nantes, the KVS New Paper Sessions of 2019 and the EALE/SOLE/AASLE World Meeting of 2020 for useful comments to presentations and earlier drafts of the paper.

Publisher Copyright:
© 2021 Pierre Koning et al., published by De Gruyter, Berlin/Boston 2021.

Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.

Funding

This research is sponsored by Instituut Gak. The authors are grateful to Patrick Hullegie for his indispensable work on the data. They also thank Nicole Maestas, Jan-Maarten van Sonsbeek, Eric French, Astrid Grasdal, Lawrence Katz, Marike Knoef, Carla van Deursen, Barend Barentsen and seminar participants at the Dutch Economists Day of 2019, the University of Bergen, the University of Nantes, the KVS New Paper Sessions of 2019 and the EALE/SOLE/AASLE World Meeting of 2020 for useful comments to presentations and earlier drafts of the paper.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities

Keywords

APC models
disability insurance
employment
self-screening

Access to Document

10.1515/bejeap-2021-0010

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Cite this

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title = "Decomposing Employment Trends of Disabled Workers",

abstract = "This paper estimates Age-Period-Cohort models on employment rates of Dutch Disability Insurance (DI) applicants. We find that the substantial decrease in employment between 1999 and 2013 is explained by year-of-Application cohort effects and that period effects are negligible. In turn, application cohort effects partly stem from increasing shares of applicants without permanent contracts. Changes in application cohort effects are largely confined to the years following two DI reforms that increased self-screening among workers. We next analyze changes in employment rates of awarded and rejected applicants and follow a Difference-in-Differences approach. Assuming common compositional cohort effects, we infer negligible effects of changes in benefit conditions. ",

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AU - Vethaak, Heike

N1 - Funding Information: This research is sponsored by Instituut Gak. The authors are grateful to Patrick Hullegie for his indispensable work on the data. They also thank Nicole Maestas, Jan-Maarten van Sonsbeek, Eric French, Astrid Grasdal, Lawrence Katz, Marike Knoef, Carla van Deursen, Barend Barentsen and seminar participants at the Dutch Economists Day of 2019, the University of Bergen, the University of Nantes, the KVS New Paper Sessions of 2019 and the EALE/SOLE/AASLE World Meeting of 2020 for useful comments to presentations and earlier drafts of the paper. Publisher Copyright: © 2021 Pierre Koning et al., published by De Gruyter, Berlin/Boston 2021. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.

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N2 - This paper estimates Age-Period-Cohort models on employment rates of Dutch Disability Insurance (DI) applicants. We find that the substantial decrease in employment between 1999 and 2013 is explained by year-of-Application cohort effects and that period effects are negligible. In turn, application cohort effects partly stem from increasing shares of applicants without permanent contracts. Changes in application cohort effects are largely confined to the years following two DI reforms that increased self-screening among workers. We next analyze changes in employment rates of awarded and rejected applicants and follow a Difference-in-Differences approach. Assuming common compositional cohort effects, we infer negligible effects of changes in benefit conditions.

AB - This paper estimates Age-Period-Cohort models on employment rates of Dutch Disability Insurance (DI) applicants. We find that the substantial decrease in employment between 1999 and 2013 is explained by year-of-Application cohort effects and that period effects are negligible. In turn, application cohort effects partly stem from increasing shares of applicants without permanent contracts. Changes in application cohort effects are largely confined to the years following two DI reforms that increased self-screening among workers. We next analyze changes in employment rates of awarded and rejected applicants and follow a Difference-in-Differences approach. Assuming common compositional cohort effects, we infer negligible effects of changes in benefit conditions.

KW - APC models

KW - disability insurance

KW - employment

KW - self-screening

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JO - The B.E. Journal of Economic Analysis & Policy

JF - The B.E. Journal of Economic Analysis & Policy

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ER -

Decomposing Employment Trends of Disabled Workers

Abstract

Bibliographical note

Funding

UN SDGs

Keywords

Access to Document

Persistent URL (handle)

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Cite this