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The Economic Implications of Disability Insurance in Canada

Dennis R. Maki

Journal of Labor Economics 1993

The article empirically estimates the effects of disability pensions provided under the Canada / Quebec Pension Plans on the labor-force participation rates of males aged 45-64 years. Two data sets are used. One consists of pooled cross section / annual time-series data by province for the years 1975-83. The other consists of observations as of 1985 on 651 males in the specified age group. Naive estimation results from both sets of data suggest a large negative effect of pension income. In the case of the micro data, this effect becomes small and statistically nonsignificant when more sophisticated estimation methods are used.

DOI
10.1086/298331
Volume
11 (1, Part 2)
Pages
S148-S169
Language
en
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