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...

We compare three major UK surveys, BHPS, FRS and ELSA, in terms of the picture they give of the relationship between disability and receipt of the Attendance Allowance (AA) benefit. Using the different disability indicators available in each survey, we estimate a model in which probabilities of...

The paper explains the low wages of the disabled in a monopsonistic framework. In the disabled market firms face different costs of adjustment ("disabled-friendly" firm vs. "disabled-unfriendly" firm), high or low, and offer wages according to these costs. Hence, there will be high- and low-paid...