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Disability policies and public views on work disability...

5 points 4 points 3 points 2 points 1 point 0 point
Policy 10:
Unemployment DI > UE DI > UE similar similar DI < UE DI < UE
Benefit (UE) level, short level, long levels, short levels, long level, short level, long
Level and duration of duration of duration of duration of duration of duration of
Duration unemployment unemployment unemployment unemployment unemployment unemployment
Belgium,
Spain Italy, Sweden France, U.S.
Germany,
Netherlands
Note: rr = replacement rate; DI = Disability benefit

covers its whole population. Many disability systems (e.g., Belgium, France, Italy,
Spain, and the U.S.) cover labor force plus a means-tested non-contribution scheme.
In the disability systems that cover mainly labor force, five years of work are typically
required to establish entitlements (Belgium and France require shorter contribution
histories), and some of those countries (e.g., the U.S.) require several or all of the five
years of work to have occurred recently. Usually the contribution requirements for
sickness benefits are much weaker.
1.2.2 Policy 2: Minimum Disability Level
The U.S. federal disability system intends to award benefits only to the individuals who
are fully and permanently disabled. It does not allow partial or temporary disabilities.
The U.S. scores the lowest by the OECD classification for its strictest “minimum
disability level”. To receive any disability benefits, an American must have at least
71%–85% disability level, compared to only 0%–25% for a German, a Dutch, or a
Swede; 26%–40% for a Spaniard; and 56%–70% for a Belgian, French or an Italian (we
refer interested readers to Yin (2015) for a detailed analysis of the incentives provided
by the U.S. all-or-nothing disability system in contrast with the European partial
disability system and for a simulation of the effects of introducing partial benefits into
the U.S. system on application behavior and employment).
Most countries with such systems, including some Nordic (e.g., Sweden), western
(e.g., Germany, and the Netherlands), and central and eastern European countries,
offer a full benefit to those assessed to be incapable of work, as well as various partial
benefits consistent with reduced work capacity. They offer one (e.g., Germany) to
four different levels (e.g., Sweden) of partial benefits and in some cases offer finer
gradations (e.g., the Netherlands).
Other countries, including France and Spain, have a quasi-partial benefit for people
who are unable to work in their usual occupation and a full benefit only for those
unable to work in any occupation. Hence, the capacity threshold is the same for both
benefits but the reference is different. The partial benefit is allowed to be supplemented
to some extent by earnings from a job in another occupation.
Even European countries that do not offer partial benefits as part of their main
disability program, such as Belgium and Italy, have universal sickness programs as
a precursor to their long-term disability programs and also more alternative public
programs to complement their disability program. For example, while the Italian
disability pension scheme awards full benefits only to people totally unable to work, a
means-tested disability allowance compensates for partial work capacity loss. We refer
interested readers to OECD (2010) for a detailed discussion about OECD countries’
recent experience and policy lessons in reforming their disability programs.

1.2.3 Policy 3: Disability Level for Full Disability
Despite the relatively lenient standard used in Europe, compared to the U.S., in
awarding disability benefits to people with less severe work limitations (reflected in
the lower minimum disability level, higher and more durable sickness benefits, and
more generous disability benefits than unemployment benefits), European countries
require a higher or similar disability severity level to qualify for full disability benefits.

46 International Journal of Population Studies 2017, Volume 3, Issue 1