Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272424 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15797
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In Finland, large firms are partially liable for the costs of disability and unemployment benefits paid to their former workers. To estimate the effects of such costs, we exploit a reform that extended this cost-sharing to cover a new group of blue-collar workers. We show that experience rating in disability insurance reduces inflows to sickness and disability benefits and increases participation in vocational rehabilitation programs, whereas employers' unemployment insurance costs reduce excess layoffs of older workers who are eligible for extended unemployment benefits until retirement age. We find no evidence of spillover effects: employers' costs in one benefit type do not affect inflows to other types of the benefits.
Subjects: 
experience rating
coinsurance
disability insurance
unemployment insurance
JEL: 
J14
J26
H32
Document Type: 
Working Paper

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