Is Recipiency of Disability Pension Hereditary?

40 Pages Posted: 5 May 2012

See all articles by Espen Bratberg

Espen Bratberg

University of Bergen - Department of Economics

Øivind Anti Nilsen

Norwegian School of Economics (NHH) - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Kjell Vaage

University of Bergen - Department of Economics

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Abstract

This paper addresses whether children's exposure to parents receiving disability benefits induces a higher probability of receiving such benefits themselves. Most OECD countries experience an increasing proportion of the working-age population receiving permanent disability benefits. Using data from Norway, a country where around 10% of the working-age population rely on disability benefits, we find that the amount of time that children are exposed to their fathers receiving disability benefits affects their own likelihood of receiving benefits positively. This finding is robust to a range of different specifications, including family fixed effects.

Keywords: disability, intergenerational correlations, siblings fixed effects

JEL Classification: H55, J62

Suggested Citation

Bratberg, Espen and Nilsen, Oivind Anti and Vaage, Kjell, Is Recipiency of Disability Pension Hereditary?. IZA Discussion Paper No. 6508, Available at SSRN: https://ssrn.com/abstract=2051311 or http://dx.doi.org/10.2139/ssrn.2051311

Espen Bratberg (Contact Author)

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway

Oivind Anti Nilsen

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5045 Bergen
Norway

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Kjell Vaage

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway
+47 5 558 9206 (Phone)
+47 5 558 9210 (Fax)

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