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Disability Programs, Health, and Retirement in Denmark since 1960

In: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participation and Reforms

Author

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  • Paul Bingley
  • Nabanita Datta Gupta
  • Peder J. Pedersen

Abstract

This paper investigates the interaction between measures of health, disability pension take up and labor market performance in Denmark by charting their development over time and by examining how they are affected by key policy reforms in the area of early retirement. The main emphasis is on the long-run development of the Social Disability Pension (SDP) program, and whether it concurs with trends in population health based on mortality indicators (both overall and cause-specific) and with self-reported health. A strong relationship is found between labor force activity measures and non-health related programs for early retirement for those 60 and older. However, no clear relationship is evident between SDP take up and the health indicators. One reason for the lack of a correlation is most probably that SDP is "on its own track" due to program innovations and reforms creating competing risks or program substitution especially for the 50+ population.
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Suggested Citation

  • Paul Bingley & Nabanita Datta Gupta & Peder J. Pedersen, 2012. "Disability Programs, Health, and Retirement in Denmark since 1960," NBER Chapters, in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 217-249, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:12386
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    Cited by:

    1. Larsen, Mona & Pedersen, Peder J., 2015. "Labor Force Activity after 60: Recent Trends in the Scandinavian Countries with Germany as a Benchmark," IZA Discussion Papers 9393, Institute of Labor Economics (IZA).
    2. Paul Bingley & Nabanita Datta Gupta & Peder J. Pedersen, 2017. "Health Capacity to Work at Older Ages in Denmark," NBER Chapters, in: Social Security Programs and Retirement around the World: The Capacity to Work at Older Ages, pages 85-110, National Bureau of Economic Research, Inc.
    3. Datta Gupta, Nabanita & Kleinjans, Kristin J. & Larsen, Mona, 2011. "The Effect of an Acute Health Shock on Work Behavior: Evidence from Different Health Care Regimes," IZA Discussion Papers 5843, Institute of Labor Economics (IZA).
    4. Shuolin Shi & Ralf A. Wilke, 2022. "Variable selection with group structure: exiting employment at retirement age—a competing risks quantile regression analysis," Empirical Economics, Springer, vol. 62(1), pages 119-155, January.
    5. Rossin-Slater, Maya & Wüst, Miriam, 2018. "Parental responses to child support obligations: Evidence from administrative data," Journal of Public Economics, Elsevier, vol. 164(C), pages 183-196.
    6. Mona Larsen & Peder Pedersen, 2013. "To work, to retire – or both? Labor market activity after 60," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.

    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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