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Intergenerational Spillovers in Disability Insurance

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  • Gordon B. Dahl
  • Anne C. Gielen

Abstract

Using a 1993 Dutch policy reform and a regression discontinuity design, we find children of parents whose disability insurance (DI) eligibility was reduced are 11% less likely to participate in DI themselves, do not alter their use of other government programs, and earn 2% more as adults. The reduced transfers and increased taxes of children account for 40% of the fiscal savings relative to parents in present discounted value terms. Moreover, children of treated parents complete more schooling, have a lower probability of serious criminal arrests and incarceration, and take fewer mental health drugs as adults.

Suggested Citation

  • Gordon B. Dahl & Anne C. Gielen, 2018. "Intergenerational Spillovers in Disability Insurance," NBER Working Papers 24296, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24296
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    Cited by:

    1. Furtado, Delia & Papps, Kerry L. & Theodoropoulos, Nikolaos, 2022. "Who Goes on Disability when Times are Tough? The Role of Work Norms among Immigrants," European Economic Review, Elsevier, vol. 143(C).
    2. Maclean, J. Catherine & Pichler, Stefan & Ziebarth, Nicolas R., 2020. "Mandated Sick Pay: Coverage, Utilization, and Welfare Effects," IZA Discussion Papers 13132, Institute of Labor Economics (IZA).
    3. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Salamanca, Nicolás & Zhu, Anna, 2022. "Intergenerational disadvantage: Learning about equal opportunity from social assistance receipt," Labour Economics, Elsevier, vol. 79(C).
    4. Monique De Haan & Ragnhild C. Schreiner, 2018. "The Intergenerational Transmission of Welfare Dependency," RF Berlin - CReAM Discussion Paper Series 1810, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    5. Galassi, Gabriela & Koll, David & Mayr, Lukas, 2019. "The Intergenerational Correlation of Employment: Is There a Role for Work Culture?," IZA Discussion Papers 12595, Institute of Labor Economics (IZA).
    6. Manasi Deshpande & Rebecca Dizon-Ross, 2023. "The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment," NBER Working Papers 31512, National Bureau of Economic Research, Inc.
    7. Hicks, Jeffrey & Simard-Duplain, Gaëlle & Green, David A. & Warburton, William, 2022. "The effect of reducing welfare access on employment, health, and children's long-run outcomes," CLEF Working Paper Series 51, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    8. Furtado, Delia & Papps, Kerry L. & Theodoropoulos, Nikolaos, 2019. "Who Goes on Disability When Times Are Tough? The Role of Social Costs of Take-Up Among Immigrants," IZA Discussion Papers 12097, Institute of Labor Economics (IZA).
    9. De Brouwer, Octave & Tojerow, Ilan, 2023. "The Growth of Disability Insurance in Belgium: Determinants and Policy Implications," IZA Discussion Papers 16376, Institute of Labor Economics (IZA).
    10. Lídia Farré & Cristina Felfe & Libertad González & Patrick Schneider, 2022. "Changing Gender Norms across Generations: Evidence from a Paternity Leave Reform," Working Papers 1310, Barcelona School of Economics.
    11. Katie Jajtner & Matt Messel & Jason Fletcher, 2023. "Social Security Disability Insurance and intergenerational economic mobility," Contemporary Economic Policy, Western Economic Association International, vol. 41(4), pages 575-593, October.
    12. Gabriela Galassi & David Koll & Lukas Mayr, 2019. "The Intergenerational Correlation of Employment: Is There a Role for Work Culture?," Staff Working Papers 19-33, Bank of Canada.
    13. Marte E. S. Ulvestad & Simen Markussen, 2023. "Born or bred? The roles of nature and nurture for intergenerational persistence in labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 1005-1047, April.
    14. Bubonya, Melisa & Cobb-Clark, Deborah A., 2021. "Pathways of Disadvantage: Unpacking the Intergenerational Correlation in Welfare," Economics of Education Review, Elsevier, vol. 80(C).
    15. Barbara Broadway & Tessa LoRiggio & Chris Ryan & Anna Zhu, 2022. "Literature review on the impact of welfare policy design on children and youth," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 809-840, September.
    16. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    17. Godoey, Anna & Reich, Michael & Allegretto, Sylvia, 2019. "Parental Labor Supply: Evidence from Minimum Wage Changes. Working Paper #103-19," Institute for Research on Labor and Employment, Working Paper Series qt1f66h44t, Institute of Industrial Relations, UC Berkeley.
    18. Noghanibehambari, Hamid & Engelman, Michal, 2022. "Social insurance programs and later-life mortality: Evidence from new deal relief spending," Journal of Health Economics, Elsevier, vol. 86(C).
    19. Bastian, Jacob E. & Jones, Maggie R., 2021. "Do EITC expansions pay for themselves? Effects on tax revenue and government transfers," Journal of Public Economics, Elsevier, vol. 196(C).

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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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