Disability Programs, Health and Retirement in Denmark Since 1960

44 Pages Posted: 20 Jun 2011 Last revised: 1 May 2022

See all articles by Paul Bingley

Paul Bingley

Danish National Institute of Social Research (SFI)

Nabanita Datta Gupta

Department of Economics and Business, Aarhus University; IZA Institute of Labor Economics

Peder J. Pedersen

Department of Economics Aarhus University ; IZA Institute of Labor Economics

Date Written: June 2011

Abstract

This paper investigates the interaction between measures of health, disability pension take up and labor market performance in Denmark by charting their development over time and by examining how they are affected by key policy reforms in the area of early retirement. The main emphasis is on the long-run development of the Social Disability Pension (SDP) program, and whether it concurs with trends in population health based on mortality indicators (both overall and cause-specific) and with self-reported health. A strong relationship is found between labor force activity measures and non-health related programs for early retirement for those 60 and older. However, no clear relationship is evident between SDP take up and the health indicators. One reason for the lack of a correlation is most probably that SDP is "on its own track" due to program innovations and reforms creating competing risks or program substitution especially for the 50+ population.

Suggested Citation

Bingley, Paul and Datta Gupta, Nabanita and Pedersen, Peder J., Disability Programs, Health and Retirement in Denmark Since 1960 (June 2011). NBER Working Paper No. w17138, Available at SSRN: https://ssrn.com/abstract=1866097

Paul Bingley (Contact Author)

Danish National Institute of Social Research (SFI) ( email )

Herluf Trolles Gade 11
DK-1052
Copenhagen K, DK-1052
Denmark

Nabanita Datta Gupta

Department of Economics and Business, Aarhus University ( email )

Fuglesangs Allé 4
8210 Aarhus V
Denmark
+45 87165207 (Phone)

HOME PAGE: http://pure.au.dk/portal/da/ndg@econ.au.dk

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Peder J. Pedersen

Department of Economics Aarhus University ( email )

DK-8000 Aarhus
Denmark
+45 8942 1581 (Phone)
+45 8613 6334 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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