Vignettes and Self-Reports of Work Disability in the United States and the Netherlands

TLDR

Workers in different Western countries report markedly different rates of work disability, even though their health outcomes are similar. Using new data from the United States and the Netherlands, the study seeks to partially resolve this paradox. The study finds that Dutch respondents have a lower threshold for reporting work disability, which explains the higher reported rates; when thresholds are equalized, disability rates are similar for pain‑free individuals, but a significant difference remains among those with pain. JEL codes: J14, J28.

Abstract

In contrast to the believed similarity in their health outcomes, workers in different Western countries report very different rates of work disability. Using new data from the United States and the Netherlands, we offer a partial resolution to this paradox. We find that observed differences in reported work disability largely stem from the fact that Dutch respondents have a lower threshold in reporting whether they have a work disability than American respondents. For those who do not suffer from pain, work disability is similar in both countries once thresholds are the same. For respondents with pain, however, a significant difference remains. (JEL J14, J28)