This paper examines the effect of tighter conditions and a lower allowance on the enrollment rates by young handicapped in the disability insurance regulations. A policy reform in the Netherlands in 2015 entailed that individuals with working capabilities can no longer enter the current disability insurance scheme. They can now enter the Participation law, a regulation with tighter conditions and a lower allowance. To find the increased enrollment in this new regulation a forecasting model is used, based on data of the years 2011-2017. This model predicts the enrollment in both regulations as if the reform had not occurred. The effect is estimated for a sample of individuals that participated in schools for students with special educational needs. Results indicate that 32% from the individuals can no longer enter the disability insurance and enrollment in the Participation law increased with 13%-points in 2017. This leads to the conclusion that 40% of the affected young handicapped enter the new regulation in the third year after the reform. The results cannot directly be extrapolated to the young handicapped that have not participated in the special or practical education. It is likely that other young handicapped are more eager to enter the Participation law, the obtained result can be considered as the lower bound.

, ,
Kamphorst, J.
hdl.handle.net/2105/50054
Business Economics
Erasmus School of Economics

Naaktgeboren, E.A. (2019, February 5). Extensive enrollment of young handicapped in the Participation Law. Business Economics. Retrieved from http://hdl.handle.net/2105/50054