Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2013:10: Screening stringency in the disability insurance program

Per Johansson (), Lisa Laun () and Tobias Laun ()
Additional contact information
Per Johansson: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: P O Box 513, SE-751 20 Uppsala, Sweden
Lisa Laun: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: P O Box 513, SE-751 20 Uppsala, Sweden
Tobias Laun: Department of Economics, Uppsala University, Postal: P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: We propose a strategy for assessing how the inflow to the disability insurance program has been governed over time. We analyze the ex-ante health of individuals entering the program, compared to individuals not entering the program in the same year, by using ex-post mortality. Applying the strategy to Sweden, we find large variation in the relative health of new beneficiaries compared to non-beneficiaries over time. Some of the fluctuations correspond well to formal changes to screening stringency. However, we also find large variation in health during periods when no changes to formal eligibility criteria have been pursued.

Keywords: Disability insurance; screening stringency; proportional hazard model

JEL-codes: C41; I18; J14

30 pages, May 2, 2013

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