Publikationen des Projekts: Ungleichheit im Alter: Lebenserwartung, Pflege und Reformen des Wohlfahrtstaats

Income Effects of Disability Benefits

We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy variation using an RD design to estimate the effect of increasing disability benefits on employment, earnings, ...