Abstract
Disability insurance – the insurance against the loss of the ability to work – is a substantial part of social security expenditures and an important part of the welfare state regime in all developed countries (Aarts et al. 1996). Like almost all elements of modern social security systems, disability insurance faces a trade-off. On the one hand, disability insurance protects unhealthy people who are not able to work from falling into poverty before they are eligible for normal retirement benefits. On the other hand, however, disability insurance creates incentives to exit the labour force early and may act as another pathway to early retirement without the incidence of a major health loss.
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Börsch-Supan, A., Roth, H. (2011). Work Disability and Health Over the Life Course. In: Börsch-Supan, A., Brandt, M., Hank, K., Schröder, M. (eds) The Individual and the Welfare State. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17472-8_19
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DOI: https://doi.org/10.1007/978-3-642-17472-8_19
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