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Department of Economics, Norwegian School of Economics (NHH) Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)

No 10/2012:
Is Recipiency of Disability Pension Hereditary?

Espen Bratberg (), Ĝivind Anti Nilsen () and Kjell Vaage ()

Abstract: This paper addresses whether children’s exposure to parents receiving disability benefits induces a higher probability of receiving such benefits themselves. Most OECD countries experience an increasing proportion of the working-age population receiving permanent disability benefits. Using data from Norway, a country where around 10% of the working-age population rely on disability benefits, we find that the amount of time that children are exposed to their fathers receiving disability benefits affects their own likelihood of receiving benefits positively. This finding is robust to a range of different specifications, including family fixed effects.

Keywords: Disability; intergenerational correlations; siblings fixed effects.; (follow links to similar papers)

JEL-Codes: H55; J62; (follow links to similar papers)

37 pages, April 20, 2012

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