The impact of the disability insurance reform on work resumption and benefit substitution in the Netherlands

We evaluate the disability insurance reform introduced in 2006 in the Netherlands. Using administrative data on agents who fall sick before and after the reform, we analyse how the stricter eligibility criteria have affected the labor market participation decisions and the use of benefits from alternative social security programs. The results of the difference-in-difference regressions suggest that the stricter eligibility criteria limit the access to disability insurance substantially, and but increases labor market participation and participation in alternative social security programs to a limited extent. The impact of the program is persistent over time and is substantially heterogenous across a number of subpopulation groups.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk, gewijd aan het bevorderen van een beter begrip van de economische en sociale gevolgen van pensioenen, vergrijzing en ‘de oude dag’ in Nederland en Europa.

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