The impact of the work resumption program of the disability insurance scheme in the Netherlands
This paper evaluates the work resumption program of the disability insurance scheme introduced in 2006 in the Netherlands, which rewards partially disabled workers if they utilize their remaining earning capacity above a threshold rate. Using administrative data on all partially disabled workers between 2006 and 2013, the results of difference-in-difference regressions suggest a substantial and statistically significant increase in daily earnings of 5 euros corresponding to 8 percent of the average daily earnings during disability. The increase in daily earnings attains 7.7 euros for employees with pre-disability earnings of at least twice the minimum wage, and 8.2 euros for employees younger than 45 years of age. We disentangle between anticipation and response effects, and show that the anticipation effect contributes to the program effect by a much larger amount.