Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform

• 成果类型: Article
• 署名作者: Borghans, Lex; Gielen, Anne C.; Luttmer, Erzo F. P.
• 署名单位: Maastricht University; Maastricht University; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; IZA Institute Labor Economics; Dartmouth College
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.6.4.34
• 发表日期: 2014
• 页码: 34-70
• 关键词: unemployment-insurance; rejected applicants; IMPACT; POLICY; rise; ssi; generosity; retirement; enrollment; EMPLOYMENT

摘要

We exploit a cohort discontinuity in the stringency of Dutch disability reforms to estimate the effects of decreased DI (disability insurance) generosity on behavior of existing recipients. We find evidence of social support substitution: individuals on average offset (sic)1.00 of lost DI benefits by collecting (sic)0.30 more from other social assistance programs, but this benefit-substitution effect declines over time. Individuals also exhibit a rebound in earnings: earnings increase by (sic)0.62 on average per euro of lost DI benefits and this effect remains roughly constant over time. This is strong evidence of substantial remaining earnings capacity among long-term claimants of DI.