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Disability in a High-Work Society Case of Iceland Stefán Ólafsson University of Iceland Plenum talk II, at the Conference The Capacity to Avoid Incapacity, Hotel Nordica, Reykjavík 9th November
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Disability in a High-Work SocietyCase of Iceland

Stefán ÓlafssonUniversity of Iceland

Plenum talk II, at the Conference

The Capacity to Avoid Incapacity,Hotel Nordica, Reykjavík 9th November

Contents

• Growing numbers of disability pensioners• Comparing extent of disability pensioners• Employment participation of the disabled• New survey amongst disability pensioners - Characteristics - Work in the life of disability pensioners - Attitides to work and rehabilitation• Summary• Conclusions: Policy guidelines

Number of invalidity pensioners (All)Total, Men and Women

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Num

ber

of 7

5% in

valid

ity p

ensi

oner

s

Invalidity pensioners Men Women

1,5% 2,3%

2,4%

2,7% 3,4% 4,6% 5,6% 7,

1% 8,2%

12,4

% 17,6

%

4,9%

1,1% 2,0% 3,

5% 5,0% 6,

2% 8,6% 9,9% 11

,9%

14,5

%

20,6

%

29,3

%

8,3%

0%

5%

10%

15%

20%

25%

30%

35%

16 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 66 Total16-66

% o

f pop

ulat

ion

16-6

6 ol

d

Men Women

Proportion of invalidity pensioners (All)Age groups (16-66), Males and Females, in 2008

Total: From 4% in 1990 to 7,4% of population 2008Women=63%; Men =37%

Size of Disability Pensioners Group as a % of Population aged 20-64. OECD-Countries in 2007-8.

Source: OECD 2009 and TR

Employment Patterns of OECD Countries 2007

20

30

40

50

60

70

80

90

100

TU

RM

EX

ITA

GR

CH

UN

PO

LS

VK

LU

XB

EL

ES

PK

OR

CZ

EF

RA

IRL

OE

CD

DE

UJP

NA

UT

PR

TA

US

GB

RU

SA

NLD

FIN

NZ

LC

AN

SW

ID

NK

SW

EN

OR

ISL

Low -skilled Prime-aged men (25-54 years) Seniors (55-64 years) Women

IcelandHighest

Labour market exits in Nordic Countries% Receiving Any Pension, by age (16-66): Males and Females

0

20

40

60

80

100

120

16-39 40-49 50-54 55-59 60-62 63-64 65-66 Average

% o

f ag

e gr

oup

rece

ivin

g pe

nsio

n

Denmark Færeo Islands Finland Iceland Norway Sweden

Employment Participation of All People with Disabilities Year 2005 (% in some employment)

Source: OECD 2009

Disability and Work

• Disability and Rehabilitation Pensioners total= 8,4% of ages 20-64• 61% of All People with Disability are in some employment• 29% of Disability Pension Receivers were in some employment during last 6 months; 21% are in employment now.

• What does this mean?

• Great sucess in getting people with disabilities into work, in general• Those employed who get sick or have accidents return back to work to a great extent, compared to other nations • People at working ages have very high employment participation• There are generally relatively few unemployed in Iceland and few on sickness benefit, but relatively many on disability benefit• The biggest challenge should be to activate and rehabilitate the long-term unemployed and those already on disability pension.• The present crisis increases this policy relevance

• New Survey on Social Conditions, Participation and Attitudes of Disability Pensioners in Iceland, done in 2009 by Guðrún Hannesdóttir, Sigurður Thorlacius and Stefán Ólafsson

• This survey supports the analysis above

• The following are some results from this new survey

Disability and Work: New Survey

% of sample % of replies

Mental and behavioral disorder 26.72 27.98

Musculo-skeletal diseases 32.67 34.21

Nervous system and sense organs 8.86 9.28

Injuries and neoplasms 6.75 7.06

Mental retardation and congenital 5.43 4.29

Circulatory system, heart etc. 6.88 7.20

Other (tumors etc.) 8.20 2.49

Sum 95.50 100%

Missing 4.50  

Total 100%  

N 756  

Main Causes of Disability – TR Analysis

Disability and Work: New Survey

Respondents: Sample of All Disability pension receivers

Disability and Work: New Survey

Respondents: Sample of All Disability pension receivers

Disability and Work: New Survey

Respondents: Sample of All Disability pension receivers, not in work now

Disability and Work: New Survey

Respondents: Those not interested in work now (about 35% of pensioners)

Disability and Work: New Survey

Disability and Work: New Survey

Respondents: Those interested in work now (about 65% of pensioners)

Disability and Work: New Survey

Respondents: Sample of All Disability pension receivers

Disability and Work: New Survey

Disability and Work: New Survey

Respondents: Sample of All Disability pension receivers

Profile of Disability and Work:• High work participation of people at working age(16-65)• High work participation of people with disabilities• Low work participation of people on disability pension• Positive attitude to work amongst the disabled• Most prefer part-time work (due to health limitations)• Positive attitude to rehabilitation amongst the disabled• Relatively many are on disability pension, but few on

sickness benefit and unemployment benefit (long-term)• Too big role for Disability Prension Scheme: Not good• Inadequate vocational rehabilitation

Summary

• Decrease work related risk –monitor sickness absence from early on

• Strengthening the disability tests>Workability tests– Get more people on to rehabilitation benefit;fewer on disability

• Facilitate employment participation– Incentives to employers and the disabled; Support system;

Increased Rehabilitation; Enlightenment in society and labour market

• Make institutions more efficient / Modernize• One-stop-shop approach / One system for all • Focus primarily on long-term unemployed and the

already disabled; deal early with the newly sick.

Conclusions: Good Policy Emphasis

Takk fyrir!

Retirement Pattern of Icelanders% Receiving Any Pension, by age (60-74): Males and Females

0%10%20%30%40%50%60%70%80%90%

100%110%120%

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74

Males Females

Retirement Pattern of Nordics % Receiving Any Pension, by age (60-74): Males

0%10%20%30%40%50%60%70%80%90%

100%110%

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74

Denmark Færoe Islands Finland

Iceland Norway Sweden

Retirement Pattern of Nordics% Receiving Any Pension, by age (60-74): Females

0%10%20%30%40%50%60%70%80%90%

100%110%

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74

Danmark Færøerne Finland

Island Norge Sverige

Contents

Contents


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