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This paper analyzes whether financial disincentives affect firm demand for disabled workers. In Germany, firms must pay a noncompliance fine if they do not meet their legal quota for disabled workers. I exploit a threshold in this quota: Firms with fewer than 40 employees are required to employ...
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Previous modelling of the impact of disability on employment has failed to allow for a direct effect rendering some … individuals capable of work. A model in which both a capacity and a desire for work are necessary conditions for employment is … failure to allow for it results in overestimation of the wage elasticity of employment. The accuracy of self-reported capacity …
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This study provides insight in the responsiveness of disabled workers to financial incentives, using administrative individual data from the Netherlands from 2006 to 2013. We focus on workers receiving partial DI benefits and with substantial residual work capacities that can be exploited. After...
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