ABSTRACT
In the last two decades disability benefit 1 recipiency increased significantly in most OECD countries. 2 The prime policy response has been to attempt to limit inflow to benefits. Strategies directed at prospective claimants have included curtailing eligibility (for example, restricting qualifying medical conditions, tightening the disability assessment procedures, limiting qualifying contribution years) and, notably in the Scandinavian and Germanic countries, rehabilitation measures as the first resort. Strategies to avoid inflow directed at employers include financial incentives to retain employees at risk of claiming disability benefits, and obligations to formulate and implement return to work plans for employees on sickness absence. Attempts to increase benefit outflows have included new, or more rigorous, continuing eligibility reviews, work incentives (such as opportunities to combine benefits and earnings to smooth transitions, trial work periods and in-work supplements) and reducing disincentives in the benefits system rules (such as allowing return to previous benefit if the job is not sustained).
