Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141501
Authors: 
De Groot, Nynke
Koning, Pierre
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9742
Abstract: 
Experience rated Disability Insurance (DI) premiums are often advocated as a means to stimulate firms to reduce DI inflow and increase DI outflow. To assess the size of these intended effects of experience rating, this study provides an empirical analysis of the effects of DI experience rating in the Netherlands. We use a difference-in-difference approach with administrative matched firm and worker data that exploits the removal of experience rating for small firms in 2003 and 2004. According to our results, removing experience rating caused an increase of DI inflow of about 7% for small firms, while DI outflow decreased by 12% as a result of the reform. We argue that these effects were largely confined to the sickness period that preceded the DI claims assessment, as well as the first year of DI benefit receipt.
Subjects: 
disability insurance
experience rating
differences-in-differences
JEL: 
H22
I12
C23
Document Type: 
Working Paper

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