January 1, 1995

Disabled or unemployed?; A model for allocating inactivity

This research memorandum develops a model for a medical examiner that allocates disabled and unemployed people over disability schemes (WAO/AAW/ZW) and unemployment schemes (WW/WWV/RWW).

Empirical estimates indicate that about half of the participation in disability schemes can be characterized as hidden unemployment. Furthermore, they show that a lowering of disability benefit levels with one percent, holding constant the level of unemployment benefits, will shift about 30,000 labour years in the long run from disability schemes to unemployment schemes.

This document is only available in Dutch.


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