Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

Option Value of Disability Insurance in Canada

with Tammy Schirle,
in David A. Wise (ed.) Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement. Chicago: University of Chicago Press, 2016.
Google Scholar entry.

Abstract:

We are interested in understanding the importance of the financial incentives for work and retirement that are embedded in Canada's public retirement and disability benefit systems. We are also interested in accounting for the relative importance of financial incentives as it depends on individuals' health and socioeconomic status. To this end we extend the research presented in Baker, Gruber and Milligan (2003) which focused on the financial incentives for retirement in the structure of the Canada and Quebec Pension Plans' (C/QPP) regular retirement benefits. In this study, we have introduced the possibility of receiving Canada and Quebec Pension Plan Disability Benefits as a potential path into retirement. In doing so, we also look more closely at the impact of self-assessed health status on the responsiveness of the retirement decision.

Versions:

Final version on NBER website LINK.

Draft, April 2014: PDF.


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