Social Support Shopping: Evidence from a Regression Discontinuity in Disability Insurance Reform

During this seminar Anne C. Gielen (IZA) will present this research.

January 25, 2011
CPB, Van Stolkweg 14, The Hague

Time: 2011, Tuesday January 25, 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Anne C. Gielen (IZA)

Discussant: Daniël van Vuuren (CPB)

Language: English

Registration:  Please register by sending an email to

Abstract subject: This paper examines how a change in the generosity of one social assistance program generates spillovers onto other social assistance programs. We exploit an age discontinuity in the stringency of the 1993 Dutch disability reforms to estimate the causal effect of exit from disability insurance (DI) on participation in other social assistance programs. We find strong evidence of “social support shopping”: 43 percent of those induced to leave DI due to the reform receive an alternative form of social assistance two years after the implementation of the reform. As a result, for each Euro saved in DI benefits, the government has to spend an extra 60 cents in other social assistance programs. This crowd-out rate grows from 60% to 69% if we also take into account the response of the partners’ of those affected by the DI reform. The crowd-out effect declines over time, but is still 25% eight years after the reform.

CPB organises seminars for researchers. During these seminars, always held on Tuesday from 1.00 pm. to 2.00 pm., academic papers are presented and discussed. Read here how to subscribe (or unsubscribe) to our seminar alert service.

Policy seminars
CPB also organises policy seminars for policy makers, researchers and other stakeholders. These policy seminars focus on policy implications. Policy seminars are held on Thursday from 1.00 pm. to 2.00 pm. Read here how to subscribe (or unsubscribe) to our Policy seminar alert service.


Michiel van Leuvensteijn
Mauro Mastrogiacomo