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...

The number of people claiming incapacity benefits increased rapidly to the mid 1990s, and has hardly reduced since then. This paper uses survey data to plot trends over time in the prevalence of disability, and in the employment rates of disabled people, in a way which is independent of, but...