UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

How financial incentives induce disability insurance recipients to return to work

Kostøl, AR; Mogstad, M; (2014) How financial incentives induce disability insurance recipients to return to work. American Economic Review , 104 (2) 624 - 655. 10.1257/aer.104.2.624. Green open access

[thumbnail of Accepted AER_final_shortabstract.pdf] PDF
Accepted AER_final_shortabstract.pdf
Available under License : See the attached licence file.

Download (491kB)

Abstract

Using a local randomized experiment that arises from a sharp discontinuity in Disability Insurance (DI) policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to work. We find that many DI recipients have considerable capacity to work that can be effectively induced by providing financial work incentives. We further show that providing work incentives to DI recipients may both increase their disposable income and reduce program costs. Our findings also suggest that targeted policies may be the most effective in encouraging DI recipients to return to work.

Type: Article
Title: How financial incentives induce disability insurance recipients to return to work
Open access status: An open access version is available from UCL Discovery
DOI: 10.1257/aer.104.2.624
Publisher version: http://dx.doi.org/10.1257/aer.104.2.624
Language: English
Additional information: Copyright © 2014 by the American Economic Association.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
URI: https://discovery.ucl.ac.uk/id/eprint/1390258
Downloads since deposit
239Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item