Philip de Jong
, Maarten Lindeboom
and Bas van der Klaauw
Philip de Jong: University of Amsterdam
Maarten Lindeboom: Free University Amsterdam
Bas van der Klaauw: Free University Amsterdam, Postal: DeBoelelaan 1105, 1081 HV Amsterdam, The Netherlands
Abstract: This paper investigates the effects of stricter screening of disability insurance applications. A large-scale experiment was setup where in two of the 26 Dutch regions case workers of the disability insurance administration were instructed to screen applications more stringently. The empirical results show that stricter screening reduces long-term sickness absenteeism and disability insurance applications. We find evidence for direct effects of stricter screening on work resumption during the period of sickness absence and for self-screening by potential disability insurance applicants. Stricter screening seems to improve targeting efficiency, without inducing negative spillover effects to the inflow into unemployment insurance. The costs of stricter screening are only a small fraction of the monetary benefits.
23 pages, November 30, 2006
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