Older people’s participation in disability benefits: targeting, timing and financial wellbeing

Publication type

ISER Working Paper Series

Series Number

2010-23

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ISER Working Paper Series

Author

Publication date

July 6, 2010

Abstract:

This paper evaluates the effectiveness of disability benefits for the elderly. Using seventeen waves of panel data, it first analyses the extent to which receipt is responsive to changes in disability status. Second, it investigates the extent of delays in first receipt. Third, it compares later outcomes of recipients and non-recipients, accounting for selection into the program. Results indicate that entry is highly responsive to previous changes in disability, and that the program enhances persistently recipients’ financial wellbeing. However, considerable delays in receipt are also found. Besides, the evidence of characteristics unrelated to eligibility influencing the assignment mechanism raises horizontal equity concerns.

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