TY - JOUR
T1 - Return-to-work policies' clawback regime and labor supply in disability insurance programs
AU - Zaresani, Arezou
AU - Olivo Villabrille, Miguel
PY - 2022
Y1 - 2022
N2 - Exploiting a quasi-natural experiment and using administrative data, we examine the effects of the return-to-work policies’ clawback regime in Disability Insurance (DI) programs on beneficiaries’ labor supply decisions, allowing them to collect reduced DI payments while working. We compare two return-to-work policies: one with a single rate clawback regime and another featuring a more generous clawback regime, where a reform further increased its generosity. The reform caused an increase in the mean labor supply: beneficiaries who already work, work more, and those who did not work started working. The effects are heterogeneous by beneficiaries’ characteristics, and the increase is driven mainly by top percentiles of earnings. Findings suggest an essential role for the clawback regime in return-to-work policies and targeted policies to increase the labor supply in DI programs.
AB - Exploiting a quasi-natural experiment and using administrative data, we examine the effects of the return-to-work policies’ clawback regime in Disability Insurance (DI) programs on beneficiaries’ labor supply decisions, allowing them to collect reduced DI payments while working. We compare two return-to-work policies: one with a single rate clawback regime and another featuring a more generous clawback regime, where a reform further increased its generosity. The reform caused an increase in the mean labor supply: beneficiaries who already work, work more, and those who did not work started working. The effects are heterogeneous by beneficiaries’ characteristics, and the increase is driven mainly by top percentiles of earnings. Findings suggest an essential role for the clawback regime in return-to-work policies and targeted policies to increase the labor supply in DI programs.
U2 - 10.1016/j.labeco.2022.102215
DO - 10.1016/j.labeco.2022.102215
M3 - Article
VL - 78
JO - Labour Economics
JF - Labour Economics
SN - 0927-5371
ER -