Marie, Olivier; Vall Castello, Judit - In: Journal of Public Economics 96 (2012) 1, pp. 198-210
We analyze the employment effect of a law that provides for a 36% increase in the generosity of disability insurance (DI) for claimants who are, as a result of their lack of skills and of the labour market conditions they face, deemed unlikely to find a job. The selection process for treatment...