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During the follow-up there was an increased probability for working, a decreased probability for being on sick leave, and an increased probability for being on disability pension.
During the 4-year follow-up the probability for working increased and the probability for being on sick leave decreased (see Figure 1 and Table 2).
We found an increased probability for working after receiving either medical or vocational rehabilitation allowances, at the time of departure from a rehabilitation clinic.
For those working (i.e. no registered benefit) at departure, the probability for working after 1 year was 52%, and it was 54% at 4-year follow-up.
For those receiving medical rehabilitation allowance or vocational rehabilitation allowance at departure, it was an increased probability for working over time.
It seem to be a trend that those being on partial sick leave at departure from the rehabilitation clinic had higher probability for working full-time during the first years of follow-up, than those being on full-time sick leave.
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Meanwhile, it lowers the probability of working for wages by 2.9%.
While the national average probability of working is 61% for a 60 to 64 year old male without these limitations, our analysis suggests that a similar male who had the same functional limitations as a person requiring hip replacement would have only a 21-25% probability of being employed.
Indeed, in the present model, the coefficient of −0.68 is much too large to be realistic, since it implies remittance receipt would place the predicted probability of working well below zero for a significant share of the sample.
First, we show that an increase in transfer entitlements available for part-time work has only a modest impact on the probability of working part-time, and has essentially no adverse effect on the probability of full-time work.
Secondly, the high unemployment rate in Spain has made it even more difficult to enter the wage employment sector, which also can explain the high probability for individuals not working to entering upon self-employment in Spain.
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Justyna Jupowicz-Kozak
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