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How disability insurance reforms change the consequences of health shocks on income and employment

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  • Hullegie, Patrick
  • Koning, Pierre

Abstract

This paper examines whether Dutch disability insurance reforms have helped or hindered employment opportunities of workers that are facing unanticipated shocks to their health. An important component of the reforms was to make employers responsible for paying sickness benefits and to strengthen their sickness monitoring obligations. This may stimulate preventive and reintegration activities by firms. Using administrative data on hospitalizations, we conclude that both financial incentives and monitoring obligations have substantially lowered DI receipt and increased the employment of workers after a health shock.

Suggested Citation

  • Hullegie, Patrick & Koning, Pierre, 2018. "How disability insurance reforms change the consequences of health shocks on income and employment," Journal of Health Economics, Elsevier, vol. 62(C), pages 134-146.
    • Handle: RePEc:eee:jhecon:v:62:y:2018:i:c:p:134-146
    DOI: 10.1016/j.jhealeco.2018.09.004
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    References listed on IDEAS

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    Cited by:

    1. Agar Brugiavini & Petru Crudu, 2023. "The Role of Disability Insurance on the Labour Market Trajectories of Europeans," Working Papers 2023:20, Department of Economics, University of Venice "Ca' Foscari".
    2. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    3. Koning, Pierre & Muller, Paul & Prudon, Roger, 2022. "Why Do Temporary Workers Have Higher Disability Insurance Risks Than Permanent Workers?," IZA Discussion Papers 15173, Institute of Labor Economics (IZA).
    4. Bao, Hengmiao & Yang, Shijie, 2024. "Is there life after product quality failures? Evidence from employment decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 325-355.
    5. Mario Bernasconi & Tunga Kantarcı & Arthur Soest & Jan-Maarten Sonsbeek, 2024. "The added worker effect: evidence from a disability insurance reform," Review of Economics of the Household, Springer, vol. 22(4), pages 1275-1316, December.
    6. Tunga Kantarcı & Jan‐Maarten van Sonsbeek & Yi Zhang, 2023. "The heterogeneous impact of stricter criteria for disability insurance," Health Economics, John Wiley & Sons, Ltd., vol. 32(9), pages 1898-1920, September.

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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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