Disability Support Pension Recipients: Who Gets Off (and Stays Off) Payments?

25 Pages Posted: 21 Mar 2007

See all articles by Lixin Cai

Lixin Cai

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Ha Vu Thi Hong

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

R Wilkins

affiliation not provided to SSRN

Abstract

We use Centrelink payment records on Disability Support Pension (DSP) recipients over the period 1995 to 2002 to investigate individual transitions off payments. Our findings are consistent with the existence of a close correspondence between disability benefit receipt and labour market outcomes: entry to DSP via unemployment benefits is associated with substantially reduced prospects of exiting DSP, while employment during the DSP spell is associated with not only an increased probability of exiting DSP, but also more success in staying off payments once an exit has been made. A further finding of our analysis is that persons who exit DSP due to take-up of employment have a relatively high rate of return to payments compared with persons who exit for other reasons, and indeed exhibit a high propensity to cycle off and on payments.

Suggested Citation

Cai, Lixin and Hong, Ha Vu Thi and Wilkins, Roger, Disability Support Pension Recipients: Who Gets Off (and Stays Off) Payments?. Australian Economic Review, Vol. 40, No. 1, pp. 37-61, March 2007. Available at SSRN: https://ssrn.com/abstract=975339 or http://dx.doi.org/10.1111/j.1467-8462.2007.00440.x

Lixin Cai (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Ha Vu Thi Hong

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
+61 3 8344 2097 (Phone)
+61 3 8344 2111 (Fax)

HOME PAGE: http://www.findanexpert.unimelb.edu.au/researcher/person18127.html

Roger Wilkins

affiliation not provided to SSRN

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