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Disability insurance and the dynamics of the incentive insurance trade-off

Abstract:

We provide a life-cycle framework for comparing insurance and disincentive effects of disability benefits. The risks that individuals face and the parameters of the Disability Insurance (DI) program are estimated from consumption, health, disability insurance, and wage data. We characterize the effects of disability insurance and study how policy reforms impact behavior and welfare. DI features high rejection rates of disabled applicants and some acceptance of healthy applicants. Despite wors...

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Publication status:
Published
Peer review status:
Peer reviewed

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
St Anne's College
Role:
Author
Publisher:
American Economic Association
Journal:
American Economic Review More from this journal
Volume:
105
Issue:
10
Pages:
2986-3029
Publication date:
2015-10-31
DOI:
EISSN:
1944-7981
ISSN:
0002-8282
Pmid:
29546971
Language:
English
Pubs id:
pubs:924444
UUID:
uuid:a6a43d07-c3bc-4fe8-b316-e1bf7531d794
Local pid:
pubs:924444
Deposit date:
2019-03-04

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