nep-ias New Economics Papers
on Insurance Economics
Issue of 2010‒12‒04
four papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Business Management

  1. Disability Insurance, Population Health and Employment in Sweden By Jönsson, Lisa; Palme, Mårten; Svensson, Ingemar
  2. On the Deduction of National Insurance Payments from Tort Victims' Claims By Yoed Halbersberg
  3. Risk Aversion and the Value of Risk to Life. By Bommier, Antoine; Villeneuve, Bertrand
  4. Labour Outcomes of Graduates and Dropouts of High School and Post-secondary Education: Evidence for Canadian 24- to 26-year-olds in 2005 By Pierre Lefebvre; Philip Merrigan

  1. By: Jönsson, Lisa (Dept. of Economics, Stockholm University); Palme, Mårten (Dept. of Economics, Stockholm University); Svensson, Ingemar (Swedish Pensions Agency)
    Abstract: This paper describes the development of population health and disability insurance utilization for older workers in Sweden and analyses the relation between the two. We use three different measures of population health: (1) the mortality rate (measured between 1950 and 2009); (2) the prevalence of different types of health deficiencies obtained from Statistics Sweden’s Survey on Living Conditions (ULF, 1975-2005); (3) the utilization of health care from the inpatient register (1968–2008). We also study the development of the relative health between disability insurance recipients and non-recipients. Finally, we study the effect of the introduction of less strict eligibility criteria for older workers in 1970 and 1972 as well as the subsequent abolishment of these rules in 1991 and 1997, respectively.
    Keywords: Disability insurance; Population health
    JEL: H51 H55 I18 J26
    Date: 2010–11–25
  2. By: Yoed Halbersberg (Hebrew University of Jerusalem, Faculty of Law and Center for the Study of Rationality)
    Abstract: In CA 1093/07 Bachar v. Fokmann [2009] (request for additional hearing denied, 2010) , the Israeli Supreme Court has formed a formula for calculating the deduction of NII payments from a tort victim's claim, when only some of the victim's impairment is causally linked to the tortious act in question. Overall, six Supreme Court Justices have reviewed and affirmed this simple formula. However, this formula is incorrect, as it contradicts some of the most basic tort premises, ignores the way impairment is calculated, and necessarily leads to the under-compensation of the victim, and to an unjust enrichment of either the tortfeasor, the National Insurance Institute, or both. This Article, therefore, calls for the adoption of a different formula that is both legally and arithmetically correct.
    Keywords: Tort, Law, Insurance, Deduction, Accident, Formula, Israel,
    JEL: K13
    Date: 2010–08–01
  3. By: Bommier, Antoine; Villeneuve, Bertrand
    Abstract: The standard literature on the value of life relies on Yaari’s (1965) model, which includes an implicit assumption of risk neutrality with respect to life duration. To overpass this limitation, we extend the theory to a simple variety of nonadditively separable preferences. The enlargement we propose is relevant for the evaluation of life-saving programs: current practice, we estimate, puts too little weight on mortality risk reduction of the young. Our correction exceeds in magnitude that introduced by the switch from the notion of number of lives saved to the notion of years of life saved.
    Keywords: Life Insurance; Lifecycle Behavior; Cost-Benefit Analysis; Value of Statistical Life;
    JEL: D91 D81 D61 J17 I18
    Date: 2010
  4. By: Pierre Lefebvre; Philip Merrigan
    Abstract: The purpose of this research is to estimate the impact of education, with a particular focus on education levels lower than a university diploma, on the labour market and social outcomes of the 24- to 26-year-old Canadians found in the fourth wave of the Youth in Transition Survey (YITS), conducted by Statistics Canada in 2006. We focus on differences between individuals who did not pursue college or university level degrees. We find that dropouts perform very poorly for most of the outcomes we analyse. Our most important result is that males who finish their high-school degree very late (after 19 years of age), perform, ceteris paribus, at many levels like dropouts. This suggests that policy makers should be taking a very close look at “second chance” or “adult education” programs across Canada.
    Keywords: Education levels, high school and postsecondary dropouts, graduate and continuers, earnings, wage rates, employment, employment insurance and social assistance, volunteer activities, youth skills
    JEL: I21 I28
    Date: 2010

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