残疾福利损失的劳动力市场效应

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This Policy Research Working Paper examines the labor market effects of disability benefit loss in Hungary. Disability benefits serve as social insurance against the loss of working capacity and income for individuals with disabilities, but can also reduce labor supply. The paper studies a major reform in Hungary that reassessed the health and working capacity of a large share of beneficiaries, and estimates the employment responses to loss or reduction of benefits. The findings suggest that among those who left disability insurance, employment increased by 10-15% and wages rose by 5-10%. The paper concludes that while reforms to disability benefits can be costly, they may also lead to positive employment outcomes.