The Extent and Nature of Exits From the Disability Support Pension

Abstract

This study uses administrative records for recipients of the Disability Support Pension (DSP) over the period 1995 to 2002 to investigate the extent and nature of exits from DSP, with particular emphasis on exits due to take up of employment. The analysis shows that, consistent with the long-term nature of the DSP payment, all exits in a given year amount to less than 10 per cent of the total number of DSP recipients in that year; and of these, only one-quarter are exits off all income support payments - that is, non-death non-transfer exits. Furthermore, over 50 per cent of the DSP recipients who make the transition off payments return to income support within two years. We further find that the rate of non-death non-transfer exits declines with the time on payments, and that it is also lower for older DSP recipients and those who transferred to DSP from unemployment benefits.