Research Seminar

Reactivating disability benefit recipients: implications for employment, income and job quality — Cecília Hornok

10 May 2022


Cecília Hornok (Kiel Institute)


Facilitating the return of disability insurance recipients to the labor market is an important element of efficient program design. We study a policy that reassessed the health and working capacity of beneficiaries in Hungary. Leveraging age and health cutoffs in the reassessment, we estimate employment responses to loss or reduction of benefits. Our difference-in-differences results suggest that many beneficiaries have some remaining working capacity, but on average they return to less-qualified occupations and worse-quality firms at lower earnings levels than their pre-disability status, resulting in substantial income loss.


Aniko Biro (CERS, Hungary) – Cecília Hornok (IfW Kiel) – Judit Kreko (CERS & Budapest Institute, Hungary) – Daniel Prinz (Institute for Fiscal Studies, UK) – Agota Scharle (Budapest Institute, Hungary)


Virtual via Zoom
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