Using Dutch administrative data, we assess the work and earnings capacity of disability insurance (DI) recipients by … estimating employment and earnings responses to benefit cuts. Reassessment of DI entitlement under more stringent criteria … removed 14.4 percent of recipients from the program and reduced benefits by 20 percent, on average. In response, employment …

-assessed health measures are usually at hand in empiricalanalyses and research indicates that these may be affected by endogenous …, state dependent, reporting behaviour. Furthermore, even if an objective health measure is used, it is not likely to be … strictly exogenous to labour market status or labour income. Health and labour market variables are correlatedbecause of …

Many OECD countries are facing decreases in the employment rates of disabled workers. To uncover the driving forces of … these trends, this paper estimates Age-Period- Cohort (APC) models on administrative data of Disability Insurance (DI …) application cohorts for the Netherlands between 1999 and 2013. Our main finding is that the substantial decrease in employment …

While a large share of Disability Insurance recipients are expected to recover, outflow rates from temporary disability …) health improvement using administrative data on all Dutch disability benefit applicants. We compare those below the DI … eligibility threshold with those above and find that disincentives significantly reduce work resumption after health improves …