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Title:Evaluating the impact of a reduction in the generosity of disability benefits: The 2008 Spanish reform PDF Logo
Authors:Silva, José I.
Vall-Castello, Judit
Issue Date:2012
Series/Report no.:Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6482
Abstract:We evaluate the effects of a reduction in the generosity of disability benefits in Spain that occurred in 2008. The main objective of the reform was to reduce the amount of benefits for individuals that do not have a long contributory history as the reform introduced a disincentive to apply to the system if the individual does not have 35 years of effective contributions. Theoretical insights are gained with a life-cycle model with heterogeneous disabled workers. The model's simulations predict a reduction in the incentives to apply for disability benefits for partially disabled individuals who do not reach the 35 years of contributions. Diff-in-diff estimates are consistent with our model predictions.
Subjects:disability benefits reform
life-cycle model
policy evaluation
JEL:C33
I18
H51
Persistent Identifier of the first edition:urn:nbn:de:101:1-2012080812229
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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