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Intergenerational Effects of Disability Insurance Receipt
National Bureau of Economic Research ^ | April 2018 | Alex Verkhivker

Posted on 04/03/2018 10:18:14 AM PDT by reaganaut1

In 1969, two years after the introduction of disability insurance in the Netherlands, 4 percent of the Dutch working age population was receiving benefits. By the late 1980s, that had risen to 12 percent. Prompted by rising costs, the Dutch took a series of steps to reduce benefits, stiffen eligibility requirements, and transfer responsibility to individual employers. In Intergenerational Spillovers in Disability Insurance (NBER Working Paper No. 24296), Gordon Dahl and Anne Gielen exploit the 1993 disability insurance changes to explore how a parent's loss of some or all disability insurance benefits affected their children's future choices and outcomes. They study the children's future claims for disability benefits and other social assistance programs, their labor market outcomes as adults, and their human capital investments.

...

In 2014, nearly 20 years after the changes, the children of parents who were subject to the reduced benefits/tougher qualification regime were 1.1 percentage points less likely to be disability insurance claimants. Consistent with an anticipated future with less reliance on disability insurance, the children of affected parents are 2.2 percentage points more likely to finish upper secondary school.

Parental disability income receipt also affects their children's future earnings and taxes paid. Every €1,000 euro decline in disability benefits to parents translated into a boost of around €5,700 in their children's future earnings. Tax payments by these children between 1999 and 2014 rose by roughly €2,000 — 2 percent of the mean taxes paid. "The combination of reduced government transfers and increased tax revenue results in a fiscal gain of €5,900 per treated parent due to child spillovers by 2014," the researchers report.

(Excerpt) Read more at nber.org ...


TOPICS: Culture/Society
KEYWORDS: disability; welfare
This paper studied the Netherlands, but in the U.S. as well, too many people being on disability is also likely creating a cycle of dependency.
1 posted on 04/03/2018 10:18:14 AM PDT by reaganaut1
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To: reaganaut1

Obama really loosened up the criteria for SSI in the US. Now they take into account factors such as how young or old you are, the theory being that if you are, say, 60, you need SSI more because you don’t have much work life left. So you can have a marginal disability claim that is approved because you are close to retirement. Or vice versa for young people — they don’t have skills to work a productive job, or might have to get a manual labor job, so that turns a marginal disability claim like “depression” into a winner. I’ve seen it happen. Its disgusting.


2 posted on 04/03/2018 10:31:45 AM PDT by Opinionated Blowhard (When the people find that they can vote themselves money, that will herald the end of the republic.)
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To: reaganaut1
This is so abused in the America. It is possible that rural areas are the worst offenders. There are plenty of white trash where I live that have found some doctor who will say they are disabled.

Think monster 400 pound plus twenty-something and thirty-something diabetic women who consume boxes of donuts and puff away a carton or two of cigarettes each week. Their "disability" is all lifestyle choices. And social security cranks out their checks like clockwork. They have never paid into social security but by golly they are going to milk it for all it's worth.
 

3 posted on 04/03/2018 10:38:04 AM PDT by Governor Dinwiddie (MAGA in the mornin', MAGA in the evenin', MAGA at suppertime . . .)
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To: Governor Dinwiddie
I've seen plenty of skinny people hoping on the D train...

with "stress" or "PTSD"...btw, the most over used so called disability, but I guess a lot of military abuse it to....

work has to be its own reward I guess...

4 posted on 04/03/2018 10:44:05 AM PDT by cherry
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To: reaganaut1
When DDE signed the DI legislation in the mid-1950’s, he was told by experts that the program would be financially sustainable only if the number of recipients was limited to 3% of the working population. Consequently, the law was interpreted to limit beneficiaries to that percentage. But as with everything else, advocates demanded looser standards and the percentage of those on disability has soared. And the DI program faces financial insolvency.
5 posted on 04/03/2018 10:44:34 AM PDT by quadrant (1o)
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To: cherry
#4: "I've seen plenty of skinny people hoping on the D train.."

Oh, yes. I wasn't trying to single out one group. Where I live the guys on disability tend to be on the thinner side.

And I'm never sure what their problems are. Mental? Drugs? Alcohol? Who knows. A couple of generations ago they would have had to suck it up and deal with it.

And I would not want to belittle the truly disabled. The grifters cause everyone on disability to be tarred with the same brush. God bless those who truly need the assistance.
 

6 posted on 04/03/2018 11:08:34 AM PDT by Governor Dinwiddie (MAGA in the mornin', MAGA in the evenin', MAGA at suppertime . . .)
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To: Governor Dinwiddie
Oh, yes. I wasn't trying to single out one group. Where I live the guys on disability tend to be on the thinner side.

Where I live the guys on disability tend to be on the middle-aged and recently unemployed side, with no marketable skills to get them a new career that can compete with their former low skill but well compensated job.

7 posted on 04/03/2018 11:25:36 AM PDT by LambSlave
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To: reaganaut1
“I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it.

In my youth I travelled much, and I observed in different countries, that the more public provisions were made for the poor the less they provided for themselves, and of course became poorer.

And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”

Benjamin Franklin

8 posted on 04/03/2018 11:54:29 AM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.L)
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To: Governor Dinwiddie

How about the “disabled” who do an amazing amount of hard physical work on their rural property...wonder what those numbers look like.


9 posted on 04/03/2018 12:32:32 PM PDT by cgbg (Hidden behind the social justice warrior mask is corruption and sexual deviance.)
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To: cgbg
"How about the “disabled” who do an amazing amount of hard physical work on their rural property."

Yeah. They have some 'splainin' to do. They rank right up their with the "disabled" who are at the golf course, and able to "work" 18 holes with ease.
 

10 posted on 04/03/2018 12:42:49 PM PDT by Governor Dinwiddie (MAGA in the mornin', MAGA in the evenin', MAGA at suppertime . . .)
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To: reaganaut1

I hope they took into account the general state of the Dutch economy over this time period.


11 posted on 04/03/2018 4:16:06 PM PDT by Amberdawn (If Leftists Didn't Live By Double Standards, They'd Have No Standards At All.)
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