Intergenerational Spillovers in Disability Insurance

Using a 1993 Dutch policy reform and regression discontinuity design, we find children of parents whose disability insurance (DI) eligibility was reduced are 11 percent less likely to participate in DI themselves, do not alter their use other government programs, earn 2 more as adults. The transfers increased taxes account for 40 the fiscal savings relative present discounted value terms. Moreover, treated complete schooling, have lower probability serious criminal arrests incarceration, take fewer mental health drugs (JEL H53, I12, I38, J14)