Early Interventions and Disability Insurance: Experience from a Field Experiment | Zendy

Engström Per | Zendy; Hägglund Pathric | Zendy; Johansson Per | Zendy

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Early Interventions and Disability Insurance: Experience from a Field Experiment

Author(s) -

Engström Per,

Hägglund Pathric,

Johansson Per

Publication year - 2017

Publication title -

the economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 4.683

H-Index - 160

eISSN - 1468-0297

pISSN - 0013-0133

DOI - 10.1111/ecoj.12310

Subject(s) - psychological intervention , moral hazard , disability insurance , incentive , actuarial science , sick leave , rehabilitation , work (physics) , hazard , health benefits , psychology , business , demographic economics , economics , labour economics , medicine , physical therapy , social security , psychiatry , engineering , microeconomics , market economy , mechanical engineering , chemistry , organic chemistry , traditional medicine

We estimate the effects of early assessments of an individual's need for vocational rehabilitation in the Swedish sickness insurance system using a field experiment. One of the interventions increases the flow to disability benefits by 20%. The effect is larger for unemployed individuals, who also are covered by the sickness insurance scheme. This result is in line with a theoretical model with moral hazard and asymmetric information in which individuals with low work incentives communicate worse health in response to the assessment for rehabilitation which then increases the hazard to disability benefits.

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