OECD Social, Employment and Migration Working Papers

1815-199X (online)
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This series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language - English or French - with a summary in the other.

What Drives Inflows Into Disability?

Evidence from Three OECD Countries: Australia, Switzerland, United Kingdom You or your institution have access to this content

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Ana Llena-Nozal1, Theodora Xenogiani1
Author Affiliations
  • 1: OECD, France

28 Mar 2011
Bibliographic information

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This paper investigates the dynamic effects of health shocks on labour market transitions to disability, employment and other non-employment pathways. It uses longitudinal data to estimate time discrete duration models for three countries: Australia, Switzerland and the United Kingdom. Both current and lagged health status are important predictors of exit to disability benefits and the effect of health problems varies by age group, education and income across countries. The results are robust to the inclusion of different socio-demographic variables and to instrumenting health status.
JEL Classification:
  • H55: Public Economics / National Government Expenditures and Related Policies / Social Security and Public Pensions
  • I10: Health, Education, and Welfare / Health / General
  • J14: Labor and Demographic Economics / Demographic Economics / Economics of the Elderly ; Economics of the Handicapped ; Non-Labor Market Discrimination
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