Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

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

Espen Bratberg (), Øivind Anti Nilsen () and Kjell Vaage ()
Additional contact information
Espen Bratberg: University of Bergen, Postal: Department of Economics, University of Bergen, Bergen, Norway
Øivind Anti Nilsen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Kjell Vaage: University of Bergen, Postal: Department of Economics, University of Bergen, 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, April 20, 2012

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