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Panel estimates of the determinants of British regional male incapacity benefits rolls 1998-2006

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  • Duncan McVicar
  • Michael Anyadike-Danes

Abstract

This article explores the determinants of the proportion of the working age male population claiming Incapacity Benefits (IB), across the 11 British Government Office Regions, for the period 1998 to 2006. Three different approaches are adopted to modelling register dynamics: first, treating IB stocks as if they were trend-stationary, albeit with persistence, and estimating reduced form models for their logs; second, treating IB stocks as if they were nonstationary and examining their long-run determinants plus short-run equilibrium reversion properties; third, focusing on the determinants of gross inflows and outflows that together drive IB stocks. Given the nature of the data, no approach is ideal yet the models provide reasonably robust evidence that labour market changes-specifically falling unemployment rates and rising real earnings-have contributed to falling male IB stocks over the period.

Suggested Citation

  • Duncan McVicar & Michael Anyadike-Danes, 2010. "Panel estimates of the determinants of British regional male incapacity benefits rolls 1998-2006," Applied Economics, Taylor & Francis Journals, vol. 42(26), pages 3335-3349.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:26:p:3335-3349
    DOI: 10.1080/00036840802112414
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    References listed on IDEAS

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    1. Brian Bell & James Smith, 2004. "Health, disability insurance and labour force participation," Bank of England working papers 218, Bank of England.
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    Cited by:

    1. Marenzi, Anna & Rizzi, Dino & Zanette, Michele & Zantomio, Francesca, 2023. "Regional institutional quality and territorial equity in LTC provision," The Journal of the Economics of Ageing, Elsevier, vol. 26(C).
    2. Massimiliano Agovino & Giuliana Parodi, 2015. "Human Development and the Determinants of the Incidence of Civilian Disability Pensions in Italy: A Spatial Panel Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(2), pages 553-576, June.
    3. Marenzi, A.; & Rizzi, D.; & Zanette, M.; & Zantomio, F.;, 2022. "Regional Institutional Quality and Territorial Equity in LTC Provision," Health, Econometrics and Data Group (HEDG) Working Papers 22/27, HEDG, c/o Department of Economics, University of York.
    4. Mariya Melnychuk, 2012. "Mental health and economic conditions: how do economic fluctuations influence mental problems?," Working Papers. Serie AD 2012-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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