There are large differences in labor force participation rates by health status. We examine to what extent these differences are determined by the provisions of Disability Insurance and other pension programs. Using administrative data for Denmark we find that those in worse health and with less...

This paper investigates the interaction between measures of health, disability pension take up and labor market performance in Denmark by charting their development over time and by examining how they are affected by key policy reforms in the area of early retirement. The main emphasis is on the...

The effects of pension program incentives on retirement in Denmark are analyzed in an option value framework. Using eligibility criteria and detailed entitlement rules for the five main publicly-funded retirement programs, we calculate social security wealth, one year pension accrual and...