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Disability Insurance Benefits and Labor Supply
Abstract
A critical input for assessing the optimal size of disability insurance programs is the elasticity of labor force participation with respect to the generosity of benefits. Unfortunately, this parameter has been difficult to estimate in the context of the U.S. disability insurance program since all workers face an identical benefits schedule. I surmount this problem by studying the experience of Canada, which operates two distinct disability insurance programs: for Quebec and for the rest of Canada. The latter program raised its benefits by 36 percent in January 1987, whereas benefits in Quebec were constant. I find a sizable labor supply response to the policy change; my central estimates imply an elasticity of labor force nonparticipation with respect to disability insurance benefits of 0.28–0.36.
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Citations
Cited by
Angrist, J. D., & Krueger, A. B. (2001) · Journal of Economic Perspectives · doi:10.1257/jep.15.4.69 · Cited by 2,355
Going-Private Decisions and the Sarbanes-Oxley Act of 2002: A Cross-Country Analysis
Kamar, E., Karaca-Mandic, P., & Talley, E. (2007) · Journal of Law, Economics, and Organization · doi:10.1093/jleo/ewn019 · Cited by 117
Dynamics of health and labor market risks
Haan, P., & Myck, M. (2009) · Journal of Health Economics · doi:10.1016/j.jhealeco.2009.09.001 · Cited by 96
Metadata
- Authors
- Gruber, J.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2000-12
- Volume
- 108
- Issue
- 6
- Pages
- 1162-1183
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W2891077897
- Cited by
- 317
- References
- 0
- FWCI
- 32.14
- Type
- journal article
- Language
- en
- Open access
- closed
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- Gruber, J. (2000). Disability Insurance Benefits and Labor Supply. Journal of Political Economy. https://doi.org/10.1086/317682
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
