Sickness and disability policies: Reform paths in OECD countries between 1990 and 2014

We analysed sickness and disability policies for the working‐age population in a number of OECD countries, between the years 1990 and 2014. Existing evidence suggests that there has been a broad shift in focus from passive income maintenance to employment incentives and reintegration policies. We have updated detailed policy scores provided by the OECD to estimate model‐based country clusters. Our results indicate that countries have pursued different types of reforms consisting of a combination of integration and compensation measures. The reforms of recent decades have led to the emergence of a distinct cluster of Northern and Continental European countries characterised by a combination of strong employment‐oriented policies and comparatively high social protection levels. An analysis of recent reforms shows a continued expansion of measures that foster employment as well as instances of retrenchment in the compensation dimension. Diversity of policy settings across country groups, however, remains substantial.