While you’re here… help us stay here.

Are you enjoying open access to policy and research published by a broad range of organisations? Please donate today so that we can continue to provide this service.

Working paper

Can disability benefits promote (re)employment? Considerations for effective disability benefit design

Disability employment Income support Labour force participation Welfare recipients People with disability

Previous OECD reports have concluded that disability policy has changed substantially in many OECD countries in recent decades. Nevertheless, large employment gaps remain between people with a disability and those without. This paper builds on earlier OECD analysis and recent extensions to OECD’s tax-benefit model for selected countries.

The paper aims to assess the adequacy of income support programmes for people with reduced work capacity and their related work incentives. It describes how the system characteristics of these programs shape labour-market behaviour and employment. The paper finds evidence that the broader institutional setup of a disability programme does not necessarily have a major impact on key aspects of social-protection effectiveness. All types of schemes can achieve reasonable levels of benefit adequacy and broad benefit coverage for people with work limitations. However, design specifics matter considerably for people’s likelihood of (re-)employment.

Publication Details
License type:
All Rights Reserved
Access Rights Type:
OECD Social, Employment and Migration Working Papers, No. 253