Estimating the Effects of Recent Disability Reforms in the Netherlands

Tinbergen Institute Discussion Paper No. 11-121/3

26 Pages Posted: 12 Aug 2011

See all articles by Jan-Maarten van Sonsbeek

Jan-Maarten van Sonsbeek

CPB Netherlands Bureau of Economic Policy Analysis

Raymond Gradus

The Netherlands Ministry of Social Affairs and Employment

Multiple version iconThere are 2 versions of this paper

Date Written: August 12, 2011

Abstract

In the 1980s and 1990s, disability benefit rates in the Netherlands were among the highest in the world. However, since the beginning of this century the number of disability cases has dropped remarkably due to some very successful policy reforms. An administrative dataset of Dutch disability benefit recipients from 1999 until 2010 has been used for analyzing the immediate effects on disability inflow and outflow of the recent policy measures.

Three measures introduced between 1998 and 2004 have had a large effect reducing the inflow into the disability scheme by over 40 percentage points. The new disability scheme introduced in 2006 adds another reduction of over 20 percentage points. Effects differ substantially over demographic groups and sectors of economic activities. Furthermore, it is shown that the effects of re-examinations of the disability stock are substantial in the short run but may be overcompensated in the long run by adverse effects.

Keywords: disability, policy reform

JEL Classification: C15, H55, J26

Suggested Citation

van Sonsbeek, Jan-Maarten and Gradus, Raymond, Estimating the Effects of Recent Disability Reforms in the Netherlands (August 12, 2011). Tinbergen Institute Discussion Paper No. 11-121/3, Available at SSRN: https://ssrn.com/abstract=1908684 or http://dx.doi.org/10.2139/ssrn.1908684

Jan-Maarten Van Sonsbeek (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31-6-27979438 (Phone)

Raymond Gradus

The Netherlands Ministry of Social Affairs and Employment ( email )

Den Haag
Netherlands

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