Economic Aspects of Disability Behavior

Economic Aspects of Disability Behavior

1st Edition - April 12, 1992

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  • Authors: P.R. de Jong, J.M. Aarts
  • eBook ISBN: 9781483294865

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One of the more striking aspects of the Dutch Welfare State is its apparent difficulty in controlling the number of transfer recipients. A prime example of this management problem is the Disability Insurance program. This monograph presents a thorough investigation of the behavioral responses of employees and firms to this generous disability scheme. The heart of the study is the empirical part based on a rich data set of persons who apply for benefits and those who do not. The data derive both from self-reports as well as medical and vocational expert evaluations. Combining facets of health economics, medical sociology and econometric technique, the authors are able to reveal the intricate causalities that underlie the disability process.

Table of Contents

  • Economic Aspects of Disability Behavior; Introduction. Social Disability Insurance. Efficiency and Equity Aspects of Social Disability Insurance. Outline of the Book. The Dutch Disability Program in National and International Perspective. Dutch Social Security in International Perspective. Outline of the Dutch Social Security System. The DI-Program in National and International Perspective. The 1987 System Reform. Summary and Conclusions. The Disability Process. The Medical-Sociological Approach to Disability Behavior. The Micro-Economics of Disability Behavior. Summary, Discussion, and Introduction to the Following Chapters. History, Data and Design of the Study. Previous History. Sampling Procedures. Nonresponse. Limitations of the Database. A Preliminary Picture of the Samples. Design of the Study. Appendix to 4. Residual Work Capacity in the DI-Program. Disability and Unemployment. The Administrative Practice of Disability Determination. The Determination of Work Capacity in the SB-Sample. Expected Future Work Capacity. Expected Future Work Capacity and Actual Work Resumption. Work Capacity at DI-Entry. Discussion. Work Capacity of the Disabled after the 1987 System Reform. Conclusions. Appendix to 5. On the Problem of Endogenous Measurement Error. Model and Estimation Procedure. Empirical Specifications. Further Estimation Results. Summary and Discussion. Appendix to 6. Labor Market Opportunities. Theoretical Modelling of Individual Labor Market Histories. A Statistical Model of Individual Labor Market Histories. Data and Further Specification of the Model. Estimation Results. Unemployment and Re-employment Probabilities; DI-Insured and DI-Entrants. Conclusions. Firm Specific Disability Incidence Rates. The DI-Program and the Firm. A Model of the Firm Specific Disability Incidence. Measuring the Firm Specific Disability Risk. Summary and Discussion. Appendix to 8. Expected Earnings and DI-Benefit Streams. Wages and Benefits; A Description. The Wage Profiles. Expected Earnings and DI-Benefit Streams. Summary and Conclusions. Appendix to 9. Determinants of Entering the DI-Program; Unconditional and Conditional Probability Models. Unconditional Probability Models. The Conditional DI-Probability. Simulation of the 1980-85 Changes. Summary and Conclusions. Appendix to 10. Forecasting the Size of the Disabled Population. The Calculation Model. Definitions and Input Data. DIS-Population Forecasts. Summary and Conclusions. Appendix to 11. Economic Aspects of Disability Behavior; Summary and Conclusions. Summary of the Main Findings by Chapter. Some Policy Implications. References. Author Index. Subject Index.

Product details

  • No. of pages: 404
  • Language: English
  • Copyright: © North Holland 1992
  • Published: April 12, 1992
  • Imprint: North Holland
  • eBook ISBN: 9781483294865

About the Authors

P.R. de Jong

Affiliations and Expertise

University of Leiden, The Netherlands

J.M. Aarts

Affiliations and Expertise

Delft University of Technology, The Netherlands

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