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An Econometric Analysis of the Growth in the Numbers Claiming Invalidity Benefit: An Overview*

Published online by Cambridge University Press:  20 January 2009

Phil Holmes ,
Mauricea Lynch  and
Ian Molho
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Abstract

Invalidity benefit is the main form of state-provided long term sickness benefit in Great Britain, and the number of claims for the benefit have increased beyond all expectations since its introduction in 1971. This paper summarises the results of a project on the issue, analysing data over the period 1975/6 and 1983/4. The numbers claiming the benefit are viewed in terms of the outcome of the inflow and the duration of claims. The determination of both inflows and durations were found to be dominated by demographic effects in terms of age and health, but other factors were also found to be relevant at the margin. These included local housing and labour market conditions, as well as pay prior to entry and rates of benefit. Inflows were found to fall over the period, however, as a result of changes in the population ‘at risk’ of entry. The main cause of growth in the number of claims lay in increased durations, in relation to which it was observed that the percentage of new claimants with characteristics associated with longer claim durations increased over the period.

Type
Research Note
Information
Journal of Social Policy , Volume 20 , Issue 1 , January 1991 , pp. 87 - 105
Copyright
Copyright © Cambridge University Press 1991

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References

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