SFB 504 discussion paper 07-23

Axel Börsch-Supan
Sonderforschungsbereich 504
L 13, 15, D-68131 Mannheim
boersch-supan@mea.uni-mannheim.de

Work Disability, Health, and Incentive Effects


Abstract:
Disability insurance – the insurance against the loss of the ability to work – is a substantial part of social security expenditures in many countries. The enrolment rates in disability insurance vary strik-ingly across European countries and the US. This paper investigates the extent of, and the causes for, this variation, using data from SHARE, ELSA and HRS. We show that even after controlling for differences in the demographic structure and health status these differences remain. In turn, indicators of disability insurance generosity explain 75% of the cross-national variation. We conclude that country-specific disability insurance rules are a prime can-didate to explain the observed cross-country variation in disability insurance enrolment.
Keywords:
JEL-Classification:
Project:
B1 Börsch-Supan
Creation date:
2007-05-08
Publication Status
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