Examining the relevance of employment integration policies on disability benefit receipt: a multilevel analysis of older working age adults in 16 countries

Purpose: Nearly all advanced economic countries have adopted employment integration policies to improve the labor market outcomes of workers with disabilities and to reduce enrollment on disability benefits. To date, research has yet to investigate whether the adoption of integration policies is associated with a reduced likelihood of an older working age adult receiving disability benefits. Materials and methods: This study, drawing on data of older working-age adults from the Survey of Health Ageing and Retirement in Europe, the English Longitudinal Study of Ageing, and the Health and Retirement Study, applies multilevel logistic regression to investigate the relationship between country-level integration policies and the likelihood of disability benefit receipt in 16 OECD countries. Results: No clear association was identified between the adoption of major integration policies (comprehensiveness of vocational rehabilitation systems, employer obligation policies, work-incentive rules, benefit suspension options, and early intervention efforts) and an individual’s likelihood of receiving disability benefits. The minimum level of disability required to receive benefits was, however, identified as a significant country-level factor. Conclusions: The findings of this study may prove useful for policy makers who must weigh the costs and benefits of expanding integration measures targeted at those nearing the state pension age.Implications for Rehabilitation Many countries have adopted integration policies to improve employment outcomes of adults with work-disabilities. No clear association is identified between the adoption of integration policies and a reduced likelihood of receiving disability benefits among older adults in 16 countries. The strictness of the definition of disability used to determine eligibility is identified as a significant country-level predictor. Policy makers should carefully weigh the costs and benefits of expanding integration measures targeted at those nearing the state pension age.