Return-to-Work Policies' Clawback Regime and Labor Supply in Disability Insurance Programs

Disability insurance and the effects of return-to-work policies

“…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.…”

Take-Up and Labor Supply Responses to Disability Insurance Earnings Limits

“…Alternative policy approaches adopted in other countries avoid a notch in the benefit schedule by introducing a gradual phaseout of benefits above an earnings threshold. But even under these policy designs the implicit tax rate may still ine ciently distort labor supply (Kostøl and Mogstad, 2014;Deuchert and Eugster, 2019;Ruh and Staubli, 2019;Zaresani and Olivo-Villabrille, 2021).…”

Take-up and labour supply responses to disability insurance earnings limits

“…Alternative policy approaches adopted in other countries avoid a notch in the benefit schedule by introducing a gradual phaseout of benefits above an earnings threshold. But even under these policy designs the implicit tax rate may still inefficiently distort labor supply (Kostøl and Mogstad, 2014;Deuchert and Eugster, 2019;Ruh and Staubli, 2019;Zaresani and Olivo-Villabrille, 2021).…”