, correcting past flaws in eligibility rules or assessment procedures may entail welfare costs. We study a major reform in Hungary … insurance due to the reform 58% were employed in the primary labor market, 6% participated in public works and 36% were out of … work without benefits in the post-reform period. The consequences of leaving disability insurance sharply differed by pre-reform …

welfare costs. This paper studies a major reform in Hungary that reassessed the health and working capacity of a large share … or reduction of benefits. The findings show that among those who left disability insurance due to the reform, 58 percent … benefits in the post-reform period. The consequences of leaving disability insurance differed sharply by pre-reform employment …