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Dismissal through disability

Author

Listed:
  • Hassink, Wolter

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Ours, Jan van
  • Ridder, Geert

Abstract

If a firm wants to reduce its workforce, it may dismiss some of its workers. Altematively, it may make workers eligible for disability benefits. Upon examination these workers formally satisfy the conditions for disability enrolment. Because these conditions allow for a rather liberal interpretation of disability, these workers could have stayed on their job had they not become redundant. We use data on Dutch firms to show that at the end of the 1980s about 10 percent of the observed inflow into disability were in fact dismissals.

Suggested Citation

  • Hassink, Wolter & Ours, Jan van & Ridder, Geert, 1995. "Dismissal through disability," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1995-36
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    File URL: http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/19950036.pdf
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    More about this item

    Keywords

    Dismissals; Disability;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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