Ragnar Hjellset Alne
Ragnar Hjellset Alne: University of Bergen, Department of Economics, Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Abstract: Using a difference-in-difference model on full population data, I estimate the labor market response to a 2015 Norwegian disability insurance (DI) reform. The reform introduced an incentive program to encourage DI beneficiaries to increase their labor supply, and I find that the program significantly increased the average working hours and modestly affected the labor market participation of DI beneficiaries. There is significant heterogeneity in the estimated effects; young beneficiaries respond positively along the extensive and the intensive labor supply margins. The analysis accentuates the importance of analyzing both labor supply margins when evaluating the effects of DI reforms.
48 pages, First version: June 14, 2018. Revised: June 14, 2018.
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