Title | Return-to-work policies and labor supply in disability insurance programs |
Year of Publication | 2018 |
Authors | Zaresani, A. |
Journal | AEA Papers and Proceedings |
Pages | 272 - 276 |
Abstract | 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. |
URL | https://www.aeaweb.org/articles?id=10.1257/pandp.20181047 |
DOI | 10.1257/pandp.20181047 |
Document URL | https://www.aeaweb.org/articles/pdf/doi/10.1257/pandp.20181047 |
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Publication language(s) | English |