This paper focuses on the relation between the onset of disability and employment outcomes. We develop an event history … observed disability rates result from gradual deteriorations in health. We find no direct effect of health shocks on employment … onset of a disability by around 138%. However, health shocks are relatively rare events and therefore the larger part of …

reassessment, we estimate employment responses to loss or reduction of benefits. We find that among those who left disability …. The consequences of leaving disability insurance sharply differed by pre-reform employment status. 62% of those without … pre-reform employment did not work after exiting disability insurance, whereas this ratio was only 14% for those who had …