A theory of (work) disability behavior is proposed & tested. Behavioral differences are studied in the context of the Dutch Disability Social Insurance Program (WAO), which covers all private sector employees for income loss due to a prolonged (more than one year) incapacity to work. Focus is on accounting for the empirical phenomenon that some persons with a given "true" disability status continue to work, whereas others with the same disability status stop working & put in a claim for a disability benefit. Given the "true" state, the claimant's own perception of his or her work capacity is supposed to be the main determinant of this differential work response. Consequently, a probability model of eligibility for a WAO benefit is built, in which self-perceived work capacity acts as the pivotal variable. The model consists of two equations. The first is to assess why people perceive their work capacity differently. It was hypothesized that, apart from their true disability status, work-leisure preferences cause differences in perceptions. The second is to establish which factors directly affect the probability of becoming eligible. Both true & self-perceived disability status, & the extent to which gatekeepers & employers are helpful in realizing the claim are introduced as explanatory factors. The data by which the model is estimated are derived from a survey of 2,808 Dutch workers on sick leave. They & their employers were interviewed; & medical & occupational reports were compiled on all Rs. The sample was then administratively followed until either benefit recipiency or work resumption had taken place. The results are congruent with theoretical expectations. After controlling for true disability, self-perceived work capacity turns out to play a dominant role in the eligibility determination process. Gatekeepers & employers exert only a small influence. The regression on the capacity perceptions shows that work-leisure preferences indeed codetermine self-reported disability. Finally, there appears to be an interaction effect of self-perception with true disability: as true disability increases, the impact of the perception on the probability of eligibility dwindles. 9 Tables, 20 References. Modified AA
