Seminar

Hybrid seminar: Why Do Temporary Workers Have Higher Disability Insurance Risks Than Permanent Workers?

On Tuesday November 29th 2022, Roger Prudon (Vrije Universiteit Amsterdam) will give an online presentation titled: "Why Do Temporary Workers Have Higher Disability Insurance Risks Than Permanent Workers?" To attend this seminar, please send an e-mail to Simone Pailer (S.Pailer@cpb.nl). You will be registered at the reception or will receive a Webex-invitation via Outlook.

Date
November 29, 2022
Time
13:00 - 14:00
Location
Room 3 "Braamzaal" and online (Webex). To attend this seminar, please send an e-mail to Simone Pailer (S.Pailer@cpb.nl). You will be registered at the reception or will receive a Webex-invitation via Outlook
Presentation
Roger Prudon (Vrije Universiteit Amsterdam)
Working language
English

Workers with fixed-term contracts typically have worse health than workers with permanent contracts. We show that these differences in health translate into a substantially higher (30%) risk of applying for disability insurance (DI) in the Netherlands. Using unique administrative data on health and labor market outcomes of all employees in the Netherlands, we decompose this differential into: (i) selection of workers types into fixedterm contracts; (ii) the causal impact of temporary work conditions on worker health; (iii) the impact of differential employer incentives to reintegrate ill workers; and (iv) the differential impact of labor market prospects on the decision to apply for DI benefits. We find that selection actually masks part of the DI risk premium, whereas the causal impact of temporary work conditions on worker health is limited. At the same time, the differences in employer commitment during illness and differences in labor market prospects between fixed-term and permanent workers jointly explain more than 80% of the higher DI risk.

Contacts