Do partial disability pensions close the earnings gap?

Cueto, Begona and Miguel Á., Malo (2014): Do partial disability pensions close the earnings gap?

Abstract

In this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work in a different occupation after disability onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater even though they receive greater benefits.

• Item Type: MPRA Paper
• Language: English
• Keywords: disability pensions; earnings losses; older workers.
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions; J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly ; Economics of the Handicapped ; Non-Labor Market Discrimination

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