2018
DOI: 10.1257/pandp.20181047
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Return-to-Work Policies and Labor Supply in Disability Insurance Programs

Abstract: Return-to-work policies in disability insurance (DI) programs allow beneficiaries to collect a portion of their benefits while working. I investigate whether a large increase in incentives to work in a return-to-work policy could induce benefit recipients to increase their labor supply. I quantify the effects on earnings and labor force participation using a sharp discontinuity in the induced incentives to work at the month of the policy change in a DI program in Canada. Using administrative data, I document t… Show more

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Cited by 7 publications
(8 citation statements)
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References 14 publications
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“…Campolieti and Riddell (2012) conclude that the introduction of an annual earnings disregard in Canada has substantial effects on LFP but no effects on DI entry or exit. Zaresani (2018); Zaresani et al (2021) find sizeable effects on labor supply and earnings of return-to-work policies comparing two Canadian provinces with different clawback regimes. Ruh and Staubli (2018) explore a relaxation of the earnings restrictions in Austria and find an increase in LFP among DI beneficiaries that is entirely offset by the increase in new claimants.…”
Section: Related Literaturementioning
confidence: 97%
“…Campolieti and Riddell (2012) conclude that the introduction of an annual earnings disregard in Canada has substantial effects on LFP but no effects on DI entry or exit. Zaresani (2018); Zaresani et al (2021) find sizeable effects on labor supply and earnings of return-to-work policies comparing two Canadian provinces with different clawback regimes. Ruh and Staubli (2018) explore a relaxation of the earnings restrictions in Austria and find an increase in LFP among DI beneficiaries that is entirely offset by the increase in new claimants.…”
Section: Related Literaturementioning
confidence: 97%
“…Gruber (2000), Campolieti (2004), Marie and Vall Castello (2012), Mullen and Staubli (2016), Eugster (2019), andFavre et al (2021) analyze the impact of changes in benefit generosity. Weathers and Hemmeter (2011), Campolieti and Riddell (2012), Kostøl and Mogstad (2014), Bütler et al (2015), Koning and van Sonsbeek (2017), Vall Castelló (2017), and Zaresani (2018; Ruh and Staubli (2019) analyze the impact of introducing return-to-work incentives for workers on benefits, and Koning (2009), Gradus (2013), andDe Groot andKoning (2016) analyze this for employers.…”
Section: Conflict Of Interest Statementmentioning
confidence: 99%
“…Weathers and Hemmeter (2011), Campolieti and Riddell (2012), Kostøl and Mogstad (2014), Bütler et al. (2015), Koning and van Sonsbeek (2017), Vall Castelló (2017), and Zaresani (2018); Ruh and Staubli (2019) analyze the impact of introducing return‐to‐work incentives for workers on benefits, and Koning (2009), Van Sonsbeek and Gradus (2013), and De Groot and Koning (2016) analyze this for employers.…”
mentioning
confidence: 99%
“…Hoynes and Mo tt (1999), Benitez-Silva et al (2011), Weathers II and Hemmeter (2011) and Bütler et al (2015) find no e ects from financial incentives to work in the US and Switzerland, and Ruh and Staubli (2019) find earnings threshold provides work disincentive in Austrian DI program. Meanwhile Zaresani (2018), Kostol and Mogstad (2014) and Campolieti and Riddell (2012) find positive responses respectively in Norway and Canada. Gelber et al (2017); Maestas et al (2013); Marie and Vall Castello (2012); Lemieux and Milligan (2008); Fortin et al (2004); Campolieti (2004) and Gruber (2000) find that providing more generous benefits has negative e ects on labor supply in social assistance programs in Canada, the US, and Spain.…”
Section: Introductionmentioning
confidence: 95%