ABSTRACT
After a period of slight but steady decline through the eighties, Estonia saw the number of disability pensioners increase drastically (by almost 50 per cent) after restoration of independence in the early 1990s (Figure 13.1), following important changes to the disability benefit programme (called invalidity pension) that had been in force during the Soviet era. Most of these changes were meant to make the programme more liberal and generous, so the increase in benefit recipient population was not unexpected. Similar trends were observed in many other CEE countries (e.g. Poland) that underwent a transition to market economy (Boeri et al, 1998).
