It has been well-documented that Disability Insurance (DI) may cause moral hazard in terms of higher disability risk and lower employment. For supplementary insurance from private insurers, however, the effects are less well understood: extra coverage may further increase workers' moral hazard,...

Disability Insurance (DI) may affect workers' outcomes such as their probability to enter DI, to recover, and their employment. Supplementary insurance may increase these moral hazard effects, but also increases the financial gains of private insurers to reduce benefit costs. With increased...