Replication data for: Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform
Principal Investigator(s): View help for Principal Investigator(s) Lex Borghans; Anne C. Gielen; Erzo F. P. Luttmer
Version: View help for Version V1
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Project Citation:
Borghans, Lex, Gielen, Anne C., and Luttmer, Erzo F. P. Replication data for: Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114884V1
Project Description
Summary:
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We exploit a cohort discontinuity in the stringency of Dutch disability
reforms to estimate the effects of decreased DI (disability insurance)
generosity on behavior of existing recipients. We find evidence of
social support substitution: individuals on average offset €1.00 of
lost DI benefits by collecting €0.30 more from other social assistance
programs, but this benefit-substitution effect declines over time.
Individuals also exhibit a rebound in earnings: earnings increase by
€0.62 on average per euro of lost DI benefits and this effect remains
roughly constant over time. This is strong evidence of substantial
remaining earnings capacity among long-term claimants of DI.
Scope of Project
JEL Classification:
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I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
J22 Time Allocation and Labor Supply
J28 Safety; Job Satisfaction; Related Public Policy
J31 Wage Level and Structure; Wage Differentials
I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
J22 Time Allocation and Labor Supply
J28 Safety; Job Satisfaction; Related Public Policy
J31 Wage Level and Structure; Wage Differentials
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