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Application and Award Responses to Stricter Screening in Disability Insurance

Godard, Mathilde; Koning, Pierre; Lindeboom, Martin (2020-04), Application and Award Responses to Stricter Screening in Disability Insurance. https://basepub.dauphine.psl.eu/handle/123456789/23004

Type
Document de travail / Working paper
External document link
http://dx.doi.org/10.2139/ssrn.3569683
Date
2020-04
Publisher
SSRN
Series title
GATE working papers
Series number
WP 2012
Published in
Rochester
Pages
53
Metadata
Show full item record
Author(s)
Godard, Mathilde
Centre de Recherche en Économie et Statistique [CREST]
Groupe d'analyse et de théorie économique [GATE Lyon Saint-Étienne]
Laboratoire d'Economie et de Gestion des Organisations de Santé [Legos]
Koning, Pierre
Lindeboom, Martin
Abstract (FR)
We examine the targeting effects of stricter screening in the Dutch Disability Insurance (DI) program induced by a major nationwide reform. The drastic 2003 “Gatekeeper Protocol” raised DI application costs and revealed more information about individual true ability to work. Discontinuity-in-Time regressions on administrative data show substantial declines in DI application rates (a 40% decrease in one year), with the largest decline occurring in difficult-to-diagnose impairments and less severe health disorders. This resulted in a more deserving pool of applicants. At the same time, those who stopped applying had worse health, worked less, and were more likely to be on UI and social assistance than workers who did not apply in the old system. There are no additional targeting gains at the point of the award decision, implying that changes in average health conditions of awardees were fully driven by self-screening and work resumption in the DI waiting period.
Abstract (EN)
We examine the targeting effects of stricter screening in the Dutch Disability Insurance (DI) program induced by a major nationwide reform. The drastic 2003 “Gatekeeper Protocol” raised DI application costs and revealed more information about individual true ability to work. Discontinuity-in-Time regressions on administrative datashow substantial declines in DI application rates (a 40% decrease in one year), with the largest decline occurringin difficult-todiagnose impairments and less severe health disorders. This resulted in a more deserving pool of applicants. At the same time, those who stopped applying had worse health, worked less, and were more likelyto be on UI and social assistance than workers who did not apply in the old system. There are no additional targeting gains at the point of the award decision, implying that changes in average health conditions ofawardees were fully driven by self-screening and work resumption in the DI waiting period.
Subjects / Keywords
Disability Insurance; Screening; Targeting Efficiency
JEL
H20 - General
I30 - General

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