Capacity to Work

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Magne Mogstad - One of the best experts on this subject based on the ideXlab platform.

  • how financial incentives induce disability insurance recipients to return to Work
    The American Economic Review, 2014
    Co-Authors: Andreas Ravndal Kostol, Magne Mogstad
    Abstract:

    Using a local randomized experiment that arises from a sharp discontinuity in Disability Insurance (DI) policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to Work. We find that many DI recipients have considerable Capacity to Work that can be effectively induced by providing financial Work incentives. We further show that providing Work incentives to DI recipients may both increase their disposable income and reduce program costs. Our findings also suggest that targeted policies may be the most effective in encouraging DI recipients to return to Work.

  • how financial incentives induce disability insurance recipients to return to Work
    2012
    Co-Authors: Andreas Ravndal Kostol, Magne Mogstad
    Abstract:

    Disability Insurance (DI) programs have long been criticized by economists for apparent Work disincentives. Some countries have recently modified their programs such that DI recipients are allowed to keep some of their benefits if they return to Work, and other countries are considering similar return-to-Work policies. However, there is little empirical evidence of the effectiveness of programs that incentivize the return to Work by DI recipients. Using a local randomized experiment that arises from a sharp discontinuity in DI policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to Work. We find that many DI recipients have considerable Capacity to Work that can be effectively induced by providing financial Work incentives. We also show that providing Work incentives to DI recipients may both increase their disposable income and reduce program costs. Our findings also suggest that targeted policies may be the most effective in encouraging DI recipients to return to Work.

Andreas Ravndal Kostol - One of the best experts on this subject based on the ideXlab platform.

  • how financial incentives induce disability insurance recipients to return to Work
    The American Economic Review, 2014
    Co-Authors: Andreas Ravndal Kostol, Magne Mogstad
    Abstract:

    Using a local randomized experiment that arises from a sharp discontinuity in Disability Insurance (DI) policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to Work. We find that many DI recipients have considerable Capacity to Work that can be effectively induced by providing financial Work incentives. We further show that providing Work incentives to DI recipients may both increase their disposable income and reduce program costs. Our findings also suggest that targeted policies may be the most effective in encouraging DI recipients to return to Work.

  • how financial incentives induce disability insurance recipients to return to Work
    2012
    Co-Authors: Andreas Ravndal Kostol, Magne Mogstad
    Abstract:

    Disability Insurance (DI) programs have long been criticized by economists for apparent Work disincentives. Some countries have recently modified their programs such that DI recipients are allowed to keep some of their benefits if they return to Work, and other countries are considering similar return-to-Work policies. However, there is little empirical evidence of the effectiveness of programs that incentivize the return to Work by DI recipients. Using a local randomized experiment that arises from a sharp discontinuity in DI policy in Norway, we provide transparent and credible identification of how financial incentives induce DI recipients to return to Work. We find that many DI recipients have considerable Capacity to Work that can be effectively induced by providing financial Work incentives. We also show that providing Work incentives to DI recipients may both increase their disposable income and reduce program costs. Our findings also suggest that targeted policies may be the most effective in encouraging DI recipients to return to Work.

David A Wise - One of the best experts on this subject based on the ideXlab platform.

  • health Capacity to Work at older ages evidence from the u s
    National Bureau of Economic Research, 2016
    Co-Authors: Courtney Coile, Kevin Milligan, David A Wise
    Abstract:

    Public programs that benefit older individuals, such as Social Security and Medicare, may be changed in the future in ways that reflect an expectation of longer Work lives. But do older Americans have the health Capacity to Work longer? This paper explores this question by asking how much older individuals could Work if they Worked as much as those with the same mortality rate in the past or as much as their younger counterparts in similar health. Using both methods, we estimate that there is significant additional Capacity to Work at older ages. We also explore whether there are differences in health Capacity across education groups and whether health has improved more over time for the highly educated, using education quartiles to surmount the challenge of changing levels of education over time.

  • social security and retirement programs around the world the Capacity to Work at older ages introduction and summary
    National Bureau of Economic Research, 2016
    Co-Authors: Courtney Coile, Kevin Milligan, David A Wise
    Abstract:

    This is the introduction and summary to the seventh phase of an ongoing project on Social Security Programs and Retirement Around the World. The project compares the experiences of a dozen developed countries and uses differences in their retirement program provisions to explore the effect of SS on retirement and related questions. The first three phases of this project document that: 1) incentives for retirement from SS are strongly correlated with labor force participation rates across countries; 2) within countries, Workers with stronger incentives to delay retirement are more likely to do so; and 3) changes to SS could have substantial effects on labor force participation and government finances. The fourth volume explores whether higher employment among older persons might increase youth unemployment and finds no link between the two. The fifth and sixth volumes focus on the disability insurance (DI) program, finding that changes in DI participation are more closely linked to DI reforms than to changes in health and that reducing access to DI would raise labor supply. This seventh phase of the project explores whether older people are healthy enough to Work longer. We use two main methods to estimate the health Capacity to Work, asking how much older individuals today could Work if they Worked as much as those with the same mortality rate in the past or as younger individuals in similar health. Both methods suggest there is significant additional health Capacity to Work at older ages.

  • Health and Work at Older Ages: Using Mortality to Assess the Capacity to Work Across Countries
    Journal of Population Ageing, 2015
    Co-Authors: Kevin Milligan, David A Wise
    Abstract:

    Health and longevity have increased substantially over the last 50 years, yet the labor force participation of older men has declined in most developed countries. We use mortality as a measure of health to assess the Capacity to Work at older ages in 12 OECD countries. For a given level of mortality, the employment rates of older Workers vary substantially across countries and over time within countries. At each mortality rate in 2007, if American men between the ages of 55 and 69 had Worked as much as American men in 1977 they would have Worked an additional 3.7 years between ages 55 and 69. That is, men in this age range in 2007 would have had to Work 46.8 % more to Work as much as men with the same mortality Worked 30 years earlier in 1977. Comparing across countries, at each mortality rate in 2007, to match the Work of American men, French men for example would have to Work 4.6 years more between the ages 55 to 69 than they actually did Work. We also find that there is little relationship across countries between mortality improvements and the change in employment at older ages.

  • health and Work at older ages using mortality to assess the Capacity to Work across countries
    National Bureau of Economic Research, 2012
    Co-Authors: Kevin Milligan, David A Wise
    Abstract:

    Health and longevity have increased substantially over the last 50 years, yet the labor force participation of older men has declined in most developed countries. We use mortality as a measure of health to assess the Capacity to Work at older ages in 12 OECD countries. For a given level of mortality, the employment rates of older Workers vary substantially across countries and over time within countries. At each mortality rate in 2007, if American men between the ages of 55 and 69 had Worked as much as American men in 1977 they would have Worked an additional 3.7 years between ages 55 and 69. That is, men in this age range in 2007 would have had to Work 46.8 percent more to Work as much as men with the same mortality Worked thirty years earlier in 1977. Comparing across countries, at each mortality rate in 2007, to match the Work of American men, French men for example would have to Work 4.6 years more between the ages 55 to 69 than they actually did Work. We also find that there is little relationship across countries between mortality improvements and the change in employment at older ages.

Pierre Pestieau - One of the best experts on this subject based on the ideXlab platform.

  • social security retirement age and optimal income taxation
    Journal of Public Economics, 2004
    Co-Authors: Helmuth Cremer, Jeanmarie Lozachmeur, Pierre Pestieau
    Abstract:

    It is often argued that implicit taxation on continued activity of elderly Workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. The point of this paper is that, when first-best redistributive instruments are not available, because some variables are not observable, the optimal policy does imply a distortion of the retirement decision. Consequently, the inducement of early retirement may be part of the optimal tax-transfer policy. We consider a model in which individuals differ in their productivity and their Capacity to Work long and choose both their weekly labor supply and their age of retirement. We characterize the optimal non-linear tax-transfer that maximizes a utilitarian welfare function when weekly earnings and the length of active life are observable while individuals' productivity and health status are not observable. (C) 2003 Elsevier B.V. All rights reserved.

  • social security retirement age and optimal income taxation
    2002
    Co-Authors: Helmuth Cremer, Jeanmarie Lozachmeur, Pierre Pestieau
    Abstract:

    It is often argued that implicit taxation on continued activity of elderly Workers is responsible for the widely observed trend towards early retirement. In a world of laissez-faire or of first-best efficiency, there would be no such implicit taxation. The point of this paper is that when first-best redistributive instruments are not available, because some variables are not observable, the optimal policy does imply a distortion of the retirement decision. Consequently, the inducement of early retirement may be part of the optimal tax-transfer policy. We consider a model in which individuals differ in their productivity and their Capacity to Work long and choose both their weekly labor supply and their age of retirement. We characterize the optimal non linear tax-transfer that maximizes a utilitarian welfare function when weekly earnings and the length of active life are observable while individuals’ productivity and health status are not observable.

Gunnel Hensing - One of the best experts on this subject based on the ideXlab platform.

  • the Capacity to Work puzzle a qualitative study of physicians assessments for patients with common mental disorders
    BMC Family Practice, 2018
    Co-Authors: Monica Bertilsson, Gunnar Ahlborg, Silje Maeland, John Michael Love, Erik L Werner, Gunnel Hensing
    Abstract:

    Entitlement to sickness benefits is a legal process requiring health-related reduced Work Capacity confirmed by a physician via a sickness certificate. However, there is a knowledge gap concerning physicians’ clinical practice of Work Capacity assessments for patients with common mental disorders (CMD). Physicians claim more knowledge and skills in how to actually do the assessments. The aim of this study was to explore physicians’ tacit knowledge of performing assessments of Capacity to Work and the need for sickness absence in patients with depression and anxiety disorders. We performed a qualitative study with open-ended interviews and a short video vignette of a physician and a patient with depression as stimuli. Participating physicians (n = 24) were specialized in general practice, occupational health or psychiatry and experienced in treating patients with depression and anxiety. Interviews were audio-recorded and transcribed verbatim. Inductive content analysis was used as the analytical tool. Five categories were identified. Category 1 identified Work Capacity assessment as doing a jigsaw puzzle without any master model. The physicians both identified and created the pieces of the puzzle, mainly by facilitating strategies to make the patient a better supplier of essential information. The finished puzzle made up a highly individualized comprehensive picture required for adequate assessment. Categories 2–4 identified the particular essential pieces of information the participants used, relating to the patient’s disorder, Capacity in the Work place and contextual everyday life. For the sickness absence assessment, apart from decreased Work Capacity, the physicians also took particulars of the Work place into account; e.g. could the Work place handle an employee with reduced Capacity. Physicians’ tacit knowledge of assessing Work Capacity and the need for sickness absence for patients with CMD was identified as doing a jigsaw puzzle. The physicians became identifiers and creators of the pieces of the puzzle using a broad palette of essential information. Our findings contribute to the knowledge gap on clinical assessment and can be used as an educational tool. Because they are based on the professions’ tacit knowledge, acceptance of the model can be expected to be high.

  • health care professionals experience based understanding of individuals Capacity to Work while depressed and anxious
    Scandinavian Journal of Occupational Therapy, 2015
    Co-Authors: Monica Bertilsson, Jesper Love, Gunnar Ahlborg, Gunnel Hensing
    Abstract:

    AbstractAim: The meaning of Capacity to Work while depressed and anxious is not well comprehended. The aim of this study was to explore and describe health care professionals’ experience-based understanding of Capacity to Work in individuals with depression and/or anxiety disorders. Method: An exploratory qualitative design was used. Four focus groups were conducted with 21 professionals from psychiatric, occupational, and primary health care. Data were analysed using inductive content analysis. Results: Capacity to Work while depressed and anxious was understood as a change from the familiar to a no longer recognizable performance at Work. Managing time, daily Work demands, and emotions was described as difficult for the patients, and Capacity to Work could be fragmented by anxiety attacks. Patients were perceived as continuing to Work while life outside Work crumbled. Capacity to Work was described as part of a greater whole, the Work community, and the patient’s participation in the Work community was ...

  • self assessed mental health problems and Work Capacity as determinants of return to Work a prospective general population based study of individuals with all cause sickness absence
    BMC Psychiatry, 2013
    Co-Authors: Gunnel Hensing, Monica Bertilsson, Margda Waern, Gunnar Ahlborg, Marjan Vaez
    Abstract:

    Mental health problems are common in the Work force and influence Work Capacity and sickness absence. The aim was to examine self-assessed mental health problems and Work Capacity as determinants of time until return to Work (RTW). Employed women and men (n=6140), aged 19–64 years, registered as sick with all-cause sickness absence between February 18 and April 15, 2008 received a self-administered questionnaire covering health and Work situation (response rate 54%). Demographic data was collected from official registers. This follow-up study included 2502 individuals. Of these, 1082 were currently off sick when answering the questionnaire. Register data on total number of benefit compensated sick-leave days in the end of 2008 were used to determine the time until RTW. Self-reported persistent mental illness, the WHO (Ten) Mental Well-Being Index and self-assessed Work Capacity in relation to knowledge, mental, collaborative and physical demands at Work were used as determinants. Multinomial and binary logistic regression analyses were used to estimate odds ratios with 95% confidence intervals (CI) for the likelihood of RTW. The likelihood of RTW (≥105 days) was higher among those with persistent mental illness OR= 2.97 (95% CI, 2.10-4.20) and those with low mental well-being OR= 2.89 (95% CI, 2.31-3.62) after adjusting for gender, age, SES, hours Worked and sick leave 2007. An analysis of employees who were off sick when they answered the questionnaire, the likelihood of RTW (≥105 days) was higher among those who reported low Capacity to Work in relation to knowledge, mental, collaborative and physical demands at Work. In a multivariable analysis, the likelihood of RTW (≥105 days) among those with low mental well-being remained significant OR=1.93 (95% CI 1.46-2.55) even after adjustment for all dimensions of Capacity to Work. Self-assessed persistent mental illness, low mental well-being and low Work Capacity increased the likelihood of prolonged RTW. This study is unique because it is based on new sick-leave spells and is the first to show that low mental well-being was a strong determinant of RTW even after adjustment for Work Capacity. Our findings support the importance of identifying individuals with low mental well-being as a way to promote RTW.

  • Capacity to Work while depressed and anxious a phenomenological study
    Disability and Rehabilitation, 2013
    Co-Authors: Monica Bertilsson, Evalisa Petersson, Gunnel Ostlund, Margda Waern, Gunnel Hensing
    Abstract:

    Purpose: The aim was to explore experiences of Capacity to Work in persons Working while depressed and anxious in order to identify the essence of the phenomenon Capacity to Work. Method: Four focu ...