scholarly journals Financial Incentives and Earnings of Disability Insurance Recipients: Evidence from a Notch Design

2019 ◽  
Vol 11 (2) ◽  
pp. 269-300
Author(s):  
Philippe Ruh ◽  
Stefan Staubli
Keyword(s):  
Administrative Data ◽  
Financial Incentives ◽  
Disability Insurance ◽  
Program Entry

Most countries reduce disability insurance (DI ) benefits for beneficiaries earning above a specified threshold. Such an earnings threshold generates a discontinuous increase in tax liability—a notch—and creates an incentive to keep earnings below the threshold. Exploiting such a notch in Austria, we provide transparent and credible identification of the effect of financial incentives on DI beneficiaries’ earnings. Using rich administrative data, we document large and sharp bunching at the earnings threshold. However, the elasticity driving these responses is small. Our estimate suggests that relaxing the earnings threshold reduces fiscal cost only if program entry is very inelastic. (JEL H55, J14, J31)

scholarly journals Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt

2013 ◽  
Vol 103 (5) ◽  
pp. 1797-1829 ◽  
Author(s):  
Nicole Maestas ◽  
Kathleen J Mullen ◽  
Alexander Strand
Keyword(s):  
Social Security ◽  
Labor Supply ◽  
Administrative Data ◽  
Disability Insurance ◽  
Causal Effects ◽  
Social Security Disability Insurance ◽  
Insurance Benefit ◽  
Percentage Points ◽  
Program Entry ◽  
Social Security Disability

We present the first causal estimates of the effect of Social Security Disability Insurance benefit receipt on labor supply using all program applicants. We use administrative data to match applications to disability examiners and exploit variation in examiners' allowance rates as an instrument for benefit receipt. We find that among the estimated 23 percent of applicants on the margin of program entry, employment would have been 28 percentage points higher had they not received benefits. The effect is heterogeneous, ranging from no effect for those with more severe impairments to 50 percentage points for entrants with relatively less severe impairments. (JEL H55, J14, J22)

Trends and Disparities in Leave Use under California's Paid Family Leave Program: New Evidence from Administrative Data

2018 ◽  
Vol 108 ◽  
pp. 388-391 ◽  
Author(s):  
Sarah Bana ◽  
Kelly Bedard ◽  
Maya Rossin-Slater
Keyword(s):  
Family Member ◽  
Administrative Data ◽  
Small Firms ◽  
Maternity Leave ◽  
Disability Insurance ◽  
The State ◽  
Family Leave ◽  
Insurance System ◽  
Paid Family Leave ◽  
New Evidence

We use novel administrative data to study trends and disparities in usage of California's first-in-the-nation paid family leave (PFL) program. We show that take-up for both bonding with a new child and caring for an ill family member increased over 2005-2014. Most women combine PFL with maternity leave from the State Disability Insurance system, resulting in leaves longer than 6 weeks. Most men take less than the full 6 weeks of PFL. Individuals in the lowest earnings quartile and in small firms are the least likely to take leave. There are important differences in take-up across industries, especially for men.

scholarly journals Return-to-Work Policies and Labor Supply in Disability Insurance Programs

2018 ◽  
Vol 108 ◽  
pp. 272-276
Author(s):  
Arezou Zaresani
Keyword(s):  
Return To Work ◽  
Labor Supply ◽  
Labor Force ◽  
Administrative Data ◽  
Policy Change ◽  
Labor Force Participation ◽  
Disability Insurance ◽  
Sharp Discontinuity

Return-to-work policies in disability insurance (DI) programs allow beneficiaries to collect a portion of their benefits while working. I investigate whether a large increase in incentives to work in a return-to-work policy could induce benefit recipients to increase their labor supply. I quantify the effects on earnings and labor force participation using a sharp discontinuity in the induced incentives to work at the month of the policy change in a DI program in Canada. Using administrative data, I document that large incentives to work could induce beneficiaries to increase their labor supply both in intensive and extensive margins.

scholarly journals The Effect of Changing Financial Incentives on Repartnering*

2019 ◽  
Vol 129 (623) ◽  
pp. 2833-2866 ◽  
Author(s):  
Hayley Fisher ◽  
Anna Zhu
Keyword(s):  
Administrative Data ◽  
Financial Incentives ◽  
Natural Experiment ◽  
Policy Reform ◽  
Financial Resources ◽  
Middle Income ◽  
Lone Parents ◽  
Lone Mothers ◽  
Data Capturing ◽  
Relationship Breakdown

AbstractThis article examines how a reduction in the financial resources available to lone parents affects repartnering. We exploit an Australian natural experiment that reduced the financial resources available to a subset of separating parents. Using biweekly administrative data capturing separations occurring among low- and middle- income couples, we show that the policy reform significantly increased the speed of repartnering for affected separating mothers. The results demonstrate that one way that lone mothers respond to a reduction in financial resources available at the time of relationship breakdown is by repartnering more quickly.

scholarly journals Reference Points for Retirement Behavior: Evidence from German Pension Discontinuities

2021 ◽  
Vol 111 (4) ◽  
pp. 1126-1165
Author(s):  
Arthur Seibold
Keyword(s):  
Administrative Data ◽  
Direct Effect ◽  
Financial Incentives ◽  
Reference Points ◽  
Pension Benefit ◽  
Reference Dependence ◽  
Pension Reforms ◽  
Retirement Behavior ◽  
Effective Policy ◽  
The Universe

This paper studies the large concentration of retirement behavior around statutory retirement ages, a puzzling stylized fact. To investigate this fact, I estimate bunching responses to 644 pension benefit discontinuities, using administrative data on the universe of German retirees. Financial incentives alone cannot explain retirement patterns, but there is a large direct effect of statutory retirement ages. I argue that the framing of statutory ages as reference points for retirement provides a plausible explanation. Simulations based on a model with reference dependence highlight that shifting statutory ages via pension reforms is an effective policy to influence retirement behavior. (JEL D91, H55, J26, J32)

scholarly journals National Therapeutic Indicators in Scotland and Financial Incentives

2019 ◽  
Vol 4 (3) ◽  
Author(s):  
Sean MacBride-Stewart ◽  
Bruce Guthrie ◽  
Charis Marwick ◽  
Simon Hurding
Keyword(s):  
Administrative Data ◽  
Financial Incentives ◽  
Inhaled Corticosteroids ◽  
High Strength ◽  
Baseline Period ◽  
Prescribing Indicators ◽  
Cost Impact ◽  
The Impact ◽  
Linear Trends

Background with rationale National Therapeutic Indicators (NTI) in Scotland use national administrative data to identify variation and drive quality improvement in GP practice prescribing. Twelve indicators were developed in 2011 and in 2012 practices were offered financial incentives to review their prescribing in two where there was greatest potential for improvement. Main AimTo quantify the impact of 2012 NTI alone and in combination with financial incentives. Methods/ApproachSix NTI were selected for analysis, aiming for heterogeneity in terms of whether the focus was quality of care (clinical) or cost effectiveness (cost). Impact was evaluated using segmented linear regression of time-series prescribing data, and changes in prescribing at 12 and 24 months after NTI introduction were estimated. Other national interventions expected to influence GP prescribing were also modelled. ResultsOne selected NTI could not be modelled because of non-linear trends in the baseline period. In practices not financially incentivised to review prescribing, improvements were variable. At 12 months relative changes were dipyridamole −31.9% (95%CI; −43.1 to −20.7), quinine −3.6% (95%CI; −7.2 to −0.1), non-preferred statins 6.2% (95%CI; 1.0 to 11.5), hypnotics and anxiolytics −2.9% (95%CI; −7.3 to 1.6) and high strength inhaled corticosteroids −1.0% (95%CI; −1.7 to −0.3). In comparison financially incentivising practices resulted in larger improvements and improvements in all NTIs modelled. At 12 months relative changes were dipyridamole −65.3% (95%CI; −68.4 to −62.2), quinine −52.3% (95%CI; −54.7 to −49.9), non-preferred statins −17.8% (95%CI; −21.9 to −13.6), hypnotics and anxiolytics −9.6% (95%CI; −12.6 to −6.7) and high strength inhaled corticosteroids −6.0% (95%CI; −7.3 to −4.8). ConclusionGP prescribing can be improved through feedback of national administrative data prescribing indicators. Impact on prescribing is larger when financial incentives to focus on particular areas of prescribing are additionally used.

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