Centro de Documentacion de Fundación MAPFRE - Great recession and disability insurance in Spain

MAP20170020400

Great recession and disability insurance in Spain / Sergi Jiménez-Martín, Arnau Juanmarti Mestres, Judit Vall Castelló. — Barcelona : Universitat Pompeu Fabra [etc.], 2016

24 p . — (Documento de Trabajo ; 2017/08)

Sumario: In this paper, we exploit the strong incidence of the Great Recession in Spain to estimate the effect of economic conditions on participation in Disability Insurance (DI). Using individual panel data, we show that increases in the local unemployment rate are associated with a reduction in the individual probability to enter the DI program during the Great Recession in Spain. Using aggregate data on applications, we show that this procyclical behavior of DI awards comes from an increase in the proportion of applications that are denied. Thus, contrary to the previous literature that has extensively reported a countercyclical behavior of DI participation, our results provide new evidence that, in periods of extremely recessionary conditions, DI participation may turn procyclical

1. Discapacidad . 2. Recesión económica . 3. Mercado de trabajo . 4. Seguro de invalidez . 5. España . I. Juanmarti Mestres, Arnau . II. Vall Castelló, Judit . III. Fundación de Estudios de Economía Aplicada . IV. Universidad Pompeu Fabra . V. Documento de trabajo .