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[IWS] OECD: SICKNESS, DISABILITY & WORK: KEEPING ON TRACK IN THE ECONOMIC DOWNTURN [April 2009]

IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau
________________________________________________________________________

Organisation for Economic Cooperation and Development (OECD)

The following is a background paper prepared for the
A High-Level Forum on Sickness, Disability and Work: Addressing Policy Challenges in OECD Countries will be held in Stockholm on 14-15 May 2009.
http://www.oecd.org/site/0,3407,en_21571361_42464611_1_1_1_1_1,00.html


Sickness, Disability and Work: KEEPING ON TRACK IN THE ECONOMIC DOWNTURN [April 2009]
http://www.oecd.org/dataoecd/42/15/42630589.pdf
[full-text, 46 pages]

[excerpt]
The purpose of this background paper is to inform debate at the High-Level Forum in Stockholm on the 14-15 May 2009. The paper consists of two sections. The first provides snapshots of key outcomes that illustrate the pressing problems in this area faced by individuals concerned and society. It compares indicators for as many OECD countries as possible, drawing on administrative and survey data. The second section summarises the policy challenges arising from these trends and important lessons learned from the individual reviews of reforms and policies in Australia, Canada, Denmark, Finland, Ireland, Luxembourg, the Netherlands, Norway, Poland, Spain, Sweden, Switzerland and the United Kingdom. The issues are discussed in light of the recent downturn in the global economy.

This paper provides a synopsis of issues that will be more comprehensively discussed in a Synthesis Report due in early 2010 which will include additional material from Member countries that have not participated in the thematic review.

TABLE OF CONTENTS
INTRODUCTION ......................................................................................................................................... 5
MAIN FINDINGS......................................................................................................................................... 7
KEY TRENDS AND OUTCOMES ............................................................................................................. 11
KEY POLICY ISSUES ............................................................................................................................... 17
1. Overcoming a disability benefit culture................................................................................................. 17
2. Strengthening incentives for employers and medical professionals ...................................................... 22
3. The necessity for institutional reform .................................................................................................... 26
ANNEX 1 LABOUR MARKET POLICY IN LIGHT OF THE GLOBAL ECONOMIC DOWNTURN ......... 31
ANNEX 2 SUPPORTING FIGURES AND TABLES ................................................................................. 33

List of Figures
Figure 1. Employment rates of people with disability are low and have been falling in many countries ........................ 12
Figure 2. Disability benefit recipiency rates are high and still increasing in many countries ....... 14
Figure A2.1. After a period of decreasing unemployment, a bleak economic outlook is forecast ...... 33
Figure A2.2. People with disability are far less likely to be employed all over the OECD ................ 34
Figure A2.3. When employed, people with disability work part-time more often than others ........... 35
Figure A2.4. People with disability are twice as likely to be unemployed, even in good times ......... 35
Figure A2.5. Incomes of people with disability are relatively low, unless they are highly-educated and have a job ............ 36
Figure A2.6. People with disability are at greater risk of living in or near poverty ............................ 37
Figure A2.7. Disability benefit rolls have evolved differently across the OECD, reflecting policy choices ............. 39
Figure A2.8. Opposite trends for unemployment and disability beneficiaries highlight substitution effects .............. 40
Figure A2.9. Older workers dominate the disability benefit rolls, as well as trends over time ........... 41
Figure A2.10. Some countries have recently managed to reduce inflows into disability benefits ........ 42
Figure A2.11. People almost never leave a longer-term disability benefit for employment ................. 42
Figure A2.12. Not enough resources go to ALMPs in comparison with what is spent on compensation ................ 43
Figure A2.13. More and more inflows into disability benefit because of mental health conditions ..... 44
Figure A2.14. Employment rates of people with mental health conditions are particularly low .......... 45
Figure A2.15. Today, many more workers are reporting high work intensity ...................................... 46

List of Tables
Table A2.1. Incapacity-related spending is much higher than unemployment-related spending ....... 38

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This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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