Explaining the Growth in the Number of Recipients of the Disability Support Pension in Australia

12 Pages Posted: 3 Sep 2013

See all articles by Duncan McVicar

Duncan McVicar

Queen's University Belfast; Queen's University Belfast - Queen's Management School

R Wilkins

affiliation not provided to SSRN

Date Written: September 2013

Abstract

This article shows that one‐third of the growth in the Disability Support Pension (DSP) recipiency rate over the last 30 years can be explained by population ageing and increases in the retirement age for women. A wide range of factors is likely to have contributed to the remaining growth, but we argue that the growing attractiveness of DSP compared to other income‐support payments has played an important role. Looking forward, population growth and planned increases in the retirement age will both put upward pressure on the DSP roll, which, without major reform, could plausibly hit 1 million recipients within 10 years.

Suggested Citation

McVicar, Duncan and Wilkins, Roger, Explaining the Growth in the Number of Recipients of the Disability Support Pension in Australia (September 2013). Australian Economic Review, Vol. 46, Issue 3, pp. 345-356, 2013. Available at SSRN: https://ssrn.com/abstract=2319602 or http://dx.doi.org/10.1111/j.1467-8462.2013.12028.x

Duncan McVicar (Contact Author)

Queen's University Belfast ( email )

25 University Square
Belfast, BT7 1NN
Ireland

Queen's University Belfast - Queen's Management School

Riddel Hall
185 Stranmillis Road
Belfast, BT9 5EE
United Kingdom

Roger Wilkins

affiliation not provided to SSRN

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