Disability benefits are costly and tend to reduce labor supply. While costs can be reduced by careful targeting, correcting past eligibility rules or assessment procedures may entail welfare costs. We study a major reform in Hungary that reassessed the health and working capacity of a large...

Three important issues have recently attracted researchers to study the economics of disability. First with the availability of sophisticated data sets, it has become possible to conduct highly quantative investigations of the relative economic impacts of various types of disabling health...