Tag: Hungary
The purpose of federal disability benefits is to provide financial support to people who are impaired and can’t earn a living. But if they can work, the government wants to encourage them. Striking the right balance is tricky when setting a limit on how much a beneficiary who works is permitted to earn under t…
In most disability insurance programs, beneficiaries lose some or all of their benefits if they earn above an earnings threshold. While intended to screen out applicants with high remaining working capacity, earnings limits can also distort the labor supply of beneficiaries. We develop a simple framework to evaluate this trade-off…
