Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Bergen, Department of Economics

No 07/12: Is Recipiency of Disability Pension Hereditary?

Espen Bratberg (), Øivind Anti Nilsen () and Kjell Vaage ()
Additional contact information
Espen Bratberg: Universitetet i Bergen,, Postal: Department of Economics, Fosswinckelsgt. 14, 5007 Bergen, Norway
Øivind Anti Nilsen: Norwegian School of Economics,, Postal: NHH, Department of Economics , Helleveien 30, NO-5045 Bergen, Norway, ,
Kjell Vaage: University of Bergen, Postal: Department of Economics, Fosswinckelsgt. 14, 5007 Bergen, Norway

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

JEL-codes: H55; J62

37 pages, May 9, 2012

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