Replication data for: Financial Incentives and Earnings of Disability Insurance Recipients: Evidence from a Notch Design

Stefan Staubli & Philippe Ruh
Most countries reduce disability insurance (DI ) benefits for beneficiaries earning above a specified threshold. Such an earnings threshold generates a discontinuous increase in tax liability—a notch—and creates an incentive to keep earnings below the threshold. Exploiting such a notch in Austria, we provide transparent and credible identification of the effect of financial incentives on DI beneficiaries' earnings. Using rich administrative data, we document large and sharp bunching at the earnings threshold. However, the elasticity...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.