Do Partial Disability Pensions Close the Earnings Gap?

Begoña Cueto ^[1] ; Miguel A. Malo ^[2]
1. [1] Universidad de Oviedo
  
  Universidad de Oviedo
  
  Oviedo, España
2. [2] Universidad de Salamanca
  
  Universidad de Salamanca
  
  Salamanca, España
Localización: Hacienda Pública Española / Review of Public Economics, ISSN 0210-1173, Nº 216, 2016, págs. 103-126
Idioma: inglés
Enlaces
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Resumen
- In this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work at a different occupation after the disability’s onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater although they receive greater benefits.