NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Peder Pedersen

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Working Papers

May 2014Health, Disability Insurance and Retirement in Denmark
with Paul Bingley, Nabanita Datta Gupta, Michael Jorgensen: w20114
There are large differences in labor force participation rates by health status. We examine to what extent these differences are determined by the provisions of Disability Insurance and other pension programs. Using administrative data for Denmark we find that those in worse health and with less schooling are more likely to receive DI. The gradient of DI participation across health quintiles is almost twice as steep as for schooling – moving from having no high school diploma to college completion. Using an option value model that accounts for different pathways to retirement, applied to a period spanning a major pension reform, we find that pension program incentives in general are important determinants of retirement age. Individuals in poor health and with low schooling are significantl...

Forthcoming: Health, Disability Insurance and Retirement in Denmark, Paul Bingley, Nabanita Datta Gupta, Michael Jørgensen, Peder J. Pedersen. in Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, Wise. 2014

June 2011Disability Programs, Health and Retirement in Denmark since 1960
with Paul Bingley, Nabanita Datta Gupta: w17138
This paper investigates the interaction between measures of health, disability pension take up and labor market performance in Denmark by charting their development over time and by examining how they are affected by key policy reforms in the area of early retirement. The main emphasis is on the long-run development of the Social Disability Pension (SDP) program, and whether it concurs with trends in population health based on mortality indicators (both overall and cause-specific) and with self-reported health. A strong relationship is found between labor force activity measures and non-health related programs for early retirement for those 60 and older. However, no clear relationship is evident between SDP take up and the health indicators. One reason for the lack of a correlation is most...

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