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Return-to-work policies and labor supply in disability insurance programs

TitreReturn-to-work policies and labor supply in disability insurance programs
Année de publication2018
AuteursZaresani, A.
JournalAEA Papers and Proceedings
Pages272 - 276

Return-to-work policies in disability insurance (DI) programs allow beneficiaries to collect a portion of their benefits while working. I investigate whether a large increase in incentives to work in a return-to-work policy could induce benefit recipients to increase their labor supply. I quantify the effects on earnings and labor force participation using a sharp discontinuity in the induced incentives to work at the month of the policy change in a DI program in Canada. Using administrative data, I document that large incentives to work could induce beneficiaries to increase their labor supply both in intensive and extensive margins.

Document URLhttps://www.aeaweb.org/articles/pdf/doi/10.1257/pandp.20181047