We examine how certain occupational physical requirements affect labor transitions of disabled workers by exploiting a unique feature of South Korean Disability Insurance (DI), where award rules are based solely on an applicant’s medical condition, independent of his previous occupations. We...

This paper develops and estimates a life-cycle equilibrium labor search model in which heterogeneous firms determine health insurance provisions and heterogeneous workers sort themselves into jobs with different compensation packages over the life cycle. I study the optimal joint design of major...