Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36816
Authors: 
Bratsberg, Bernt
Fevang, Elisabeth
Røed, Knut
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 4897
Abstract: 
Economies with low unemployment often have high disability rates. In Norway, the permanent disability insurance rolls outnumber registered unemployment by four to one. Based on administrative register data matched with firms' financial statements and closure data collected from bankruptcy proceedings, we show that a large fraction of Norwegian disability insurance claims can be directly attributed to job displacement and other adverse shocks to employment opportunities. For men, we estimate that job loss more than doubles the risk of entry to permanent disability and that displacements account for fully 28 percent of all new disability insurance claims. We conclude that unemployment and disability insurance are close substitutes.
Subjects: 
Disability
displacement
social insurance
employment opportunities
JEL: 
H55
I12
I38
J63
J65
Document Type: 
Working Paper

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