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Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK

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  • Duncan McVicar

Abstract

McVicar D. (2006) Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK, Regional Studies 40, 519-533. Over the last 30 years, many Organization for Economic Co-operation and Development (OECD) countries have seen a dramatic rise in the share of the working-age population receiving earnings replacement sickness and disability benefits. The reasons behind this growth - particularly for the USA, but also to a lesser extent elsewhere - have been extensively researched in the economics literature. What have been less well researched are the large spatial differences in the size of disability benefit rolls that have emerged in some countries over this period. The UK displays a distinct regional pattern where working-age men and women in the 'North' are considerably more likely to be claiming disability benefits than those in the 'South'. The USA has its own version of the north/south divide, with many southern states displaying disproportionately large disability benefit rolls. The paper describes these regional patterns and explores the existing economics literature on disability benefits in search of potential explanations for them. McVicar D. (2006) Pourquoi les listes des demandeurs de prestations d'invalidite varient suivant la region?: une critique des preuves provenant des E-U et du R-U, Regional Studies 40, 519-533. Sur les 30 dernieres annees, beaucoup des pays-membres de l'OCDE ont temoigne d'une montee vertigineuse de la part de la population active qui font une demande de prestations de l'assurance maladie et d'invalidite invalidite. La documentation economique a approfondi les raisons qui expliquent cette montee - notamment pour les E-U mais aussi dans une moindre mesure ailleurs. Ce qui a ete moins bien recherche c'est la variation geographique importante des listes des demandeurs de prestations d'invalidite qui se font le jour dans certains pays sur cette periode. Le R-U montre une distribution regionale nette a partir de laquelle il est plus probable que les populations masculine et feminine en age de travailler du 'nord' font une demande des prestations invalidite que ne le font celles du 'sud'. Les E-U ont leur propre version du clivage nord-sud; a savoir beaucoup des etats du sud ont des listes des demandeurs de prestations d'invalidite disproportionnees. Cet article cherche a presenter ces distributions regionales et a examiner la documentation economique existante sur prestations d'invalidite afin de rechercher des explications eventuelles. Sante, Invalidite, Prestations d'invalidite, Prestations d'incapacite, Marches du travail McVicar D. (2006) Warum sind Invalidenrenten von Region zu Region verschieden? Eine Besprechung von Beweisen aus den USA und dem UK, Regional Studies 40, 519-533. Im Laufe der letzten 30 Jahre haben viele OECD Lander einen dramatischen Anstieg des Anteils der Bevolkerung im erwerbsfahigen Alter gesehen, die statt Verdienst Krankengeld und Invalidenrenten empfangen.Die Grunde fur diesen Anstieg - besonders in den USA, aber auch, obschon in geringerem Masse, andernorts - sind in der Wirtschaftsliteratur ausgiebig untersucht worden. Was jedoch weniger grundlich untersucht wurde, sind die betrachtlichen raumlichen Unterschiede im Umfang der Invalidenrentenlisten, die sich in manchen Landern in diesem Zeitraum ergeben haben. Das UK weist ein ausgesprochen regionales Muster auf, in dem die Namen sowohl von Mannern wie von Frauen im erwerbsfahigen Alter im 'Norden'weitaus ofter auf der Liste der Invalidenrente in Anspruch Nehmenden erscheinen als im Suden. Die USA haben ihre eigene Version der Nord-Sud 'Wasserscheide', in der viele Sudstaaten unverhaltnismassig lange Invalidenrentnerlisten aufweisen. Dieser Aufsatz beschreibt diese Regionalmuster, und untersucht die bereits vorliegende Wirtschaftsliteratur zur Invalidenrentnerfrage auf der Suche nach einer moglichen Erklarung dafur. Gesundheit, Invalidenrenten, Behindertenrenten, Arbeitswelt McVicar D. (2006) ¿Por que las listas de prestaciones por discapacidad varian segun las regiones? Una revision de ejemplos de Estados Unidos y el Reino Unido, Regional Studies 40, 519-533. En los ultimos 30 anos muchos paises de la OCDE han notado un espectacular aumento de la poblacion en edad de trabajar que recibe prestaciones por enfermedad o discapacidad. El motivo de este crecimiento, especialmente en los EE. UU. pero tambien en menor medida en otros paises, se ha estudiado exhaustivamente en la literatura sobre economia. No obstante, se han investigado poco las grandes diferencias espaciales en cuanto al numero de personas que reciben prestaciones por discapacidad que han surgido en algunos paises durante este periodo. En el Reino Unido se observa un modelo regional caracteristico en las regiones del norte donde mujeres y hombres en edad de trabajar presentan una mayor tendencia a solicitar prestaciones que los del sur. En Estados Unidos hay una version propia de la division norte-sur porque en el sur hay desproporcionadamente mas personas que reciben prestaciones por discapacidad. Aqui describimos estos modelos regionales y analizamos la literatura actual sobre economia con referencia a las prestaciones por discapacidad para hallar posibles explicaciones a este fenomeno. Salud, Discapacidad, Prestaciones por discapacidad, Prestacion por incapacidad, Mercados de trabajo

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  • Duncan McVicar, 2006. "Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK," Regional Studies, Taylor & Francis Journals, vol. 40(5), pages 519-533.
    • Handle: RePEc:taf:regstd:v:40:y:2006:i:5:p:519-533
    DOI: 10.1080/00343400600757635
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    2. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall Castelló, 2019. "Great Recession and disability insurance in Spain," Empirical Economics, Springer, vol. 56(5), pages 1623-1645, May.
    3. Melitz, Jacques & Darby, Julia, 2007. "Labour Market Adjustment, Social Spending and the Automatic Stabilizers in the OECD," CEPR Discussion Papers 6230, C.E.P.R. Discussion Papers.
    4. Jennifer Roberts & Karl Taylor, 2022. "New Evidence on Disability Benefit Claims in Britain: The Role of Health and the Local Labour Market," Economica, London School of Economics and Political Science, vol. 89(353), pages 131-160, January.
    5. Jenni Blomgren & Mikko Laaksonen & Riku Perhoniemi, 2021. "Changes in Unemployment Affect Sickness Absence and Disability Retirement Rates: A Municipality-Level Panel Study," IJERPH, MDPI, vol. 18(12), pages 1-14, June.
    6. Melanie K Jones & Duncan McVicar, 2022. "The dynamics of disability and benefit receipt in Britain [Large sample properties of matching estimators for average treatment effects]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 936-957.
    7. 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).
    8. Hugo Benítez-Silva & Richard Disney & Sergi Jiménez-Martín, 2010. "Disability, capacity for work and the business cycle: an international perspective [Has the boom in incapacity benefit claimant numbers passed its peak?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 25(63), pages 483-536.
    9. Roberts, Jennifer & Taylor, Karl, 2019. "New Evidence on Disability Benefit Claims in the UK: The Role of Health and the Local Labour Market," IZA Discussion Papers 12825, Institute of Labor Economics (IZA).
    10. Button, Patrick & Khan, Mashfiqur R. & Penn, Mary, 2022. "Do stronger employment discrimination protections decrease reliance on Social Security Disability Insurance? Evidence from the U.S. Social Security reforms," The Journal of the Economics of Ageing, Elsevier, vol. 22(C).
    11. 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.
    12. 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.
    13. Wong, Sandy, 2016. "Geographies of medicalized welfare: Spatial analysis of supplemental security income in the U.S., 2000–2010," Social Science & Medicine, Elsevier, vol. 160(C), pages 9-19.
    14. M. Agovino & A. Rapposelli, 2017. "Speculation on a Flexicurity Index for Disabled People: The Italian Case," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 389-414, January.
    15. Simonetta Longhi & Cheti Nicoletti & Lucinda Platt, 2012. "Interpreting Wage Gaps of Disabled Men: The Roles of Productivity and of Discrimination," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 931-953, January.
    16. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall-Castello, 2016. "Great Recession and Disability in Spain," Working Papers 896, Barcelona School of Economics.
    17. Teresa Ghilarducci & Joelle Saad-Lessler & Eloy Fisher, 2011. "The Automatic Stabilizing Effects of Social Security and 401(k) Plans," SCEPA working paper series. 2011-2, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    18. Paul L. Latreille, 2009. "Disability, Health and the Labour Market: Evidence from the Welsh Health Survey," Local Economy, London South Bank University, vol. 24(3), pages 192-210, May.
    19. Christina Beatty & Steve Fothergill, 2023. "The persistence of hidden unemployment among incapacity claimants in large parts of Britain," Local Economy, London South Bank University, vol. 38(1), pages 42-60, February.
    20. Nicoletti, Cheti & Platt, Lucinda & Longhi, Simonetta, 2009. "Decomposing pay gaps across the wage distribution: investigating inequalities of ethno-religious groups and disabled people," ISER Working Paper Series 2009-31, Institute for Social and Economic Research.
    21. Whittaker, W & Sutton, M, 2010. "Mental health, work incapacity and State transfers: an analysis of the British Household Panel Survey," Health, Econometrics and Data Group (HEDG) Working Papers 10/21, HEDG, c/o Department of Economics, University of York.

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