Do Partial Disability Pensions Close the Earnings Gap?
- Begoña Cueto 2
- Miguel A. Malo 1
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1
Universidad de Salamanca
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2
Universidad de Oviedo
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ISSN: 0210-1173
Año de publicación: 2016
Número: 216
Páginas: 103-126
Tipo: Artículo
Otras publicaciones en: Hacienda Pública Española / Review of Public Economics
Resumen
In this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work at a different occupation after the disability’s onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater although they receive greater benefits.
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