Krekó, Judit and Prinz, Dániel and Weber, Andrea (2024) Take-up and labor supply responses to disability insurance earnings limits. LABOUR ECONOMICS, 89. No.-102583. ISSN 0927-5371
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Abstract
In most disability insurance programs beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. We use a reduction in the earnings limit in Hungary to evaluate this trade-off and examine screening and labor supply responses. We find that the policy changed selection into the program modestly but reduced labor supply on the intensive margin significantly. These findings suggest that the earnings threshold should be higher.
| Item Type: | Article |
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| Uncontrolled Keywords: | Disability insurance; Labor supply; Policy analysis; Earnings limit; Disability benefit; Welfare |
| Subjects: | H Social Sciences / társadalomtudományok > HC Economic History and Conditions / gazdaság története és alapelvek > HC2 Economic policy / gazdaságpolitika H Social Sciences / társadalomtudományok > HV Social pathology. Social and public welfare / szociálpatológia, segélyezés > HV1551 People with disabilities / fogyatékkal élők |
| SWORD Depositor: | MTMT SWORD |
| Depositing User: | MTMT SWORD |
| Date Deposited: | 23 Aug 2024 07:23 |
| Last Modified: | 23 Aug 2024 07:23 |
| URI: | https://real.mtak.hu/id/eprint/203212 |
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