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Vocational considerations and trends in Social Security Disability

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  • Michaud, Amanda
  • Nelson, Jaeger
  • Wiczer, David

Abstract

Along with health, Social Security Disability Insurance (SSDI) evaluates work-limiting disability by considering vocational factors including age, education, and past work experience. SSDI determinations based on these factors have grown threefold since 1985. We use a unique state-level data-set to estimate how vocational demographics relate to SSDI awards and then assess the contribution of demographic change to SSDI trends. Although workers in their 50s are associated with higher SSDI award rates, secular increases in educational attainment should have offset the impact of population aging on rising SSDI claims, particularly those with vocational considerations.

Suggested Citation

  • Michaud, Amanda & Nelson, Jaeger & Wiczer, David, 2018. "Vocational considerations and trends in Social Security Disability," The Journal of the Economics of Ageing, Elsevier, vol. 11(C), pages 41-51.
    • Handle: RePEc:eee:joecag:v:11:y:2018:i:c:p:41-51
    DOI: 10.1016/j.jeoa.2016.12.001
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    References listed on IDEAS

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    1. Chen, Susan & van der Klaauw, Wilbert, 2008. "The work disincentive effects of the disability insurance program in the 1990s," Journal of Econometrics, Elsevier, vol. 142(2), pages 757-784, February.
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    7. Jeffrey B. Liebman, 2015. "Understanding the Increase in Disability Insurance Benefit Receipt in the United States," Journal of Economic Perspectives, American Economic Association, vol. 29(2), pages 123-150, Spring.
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    Cited by:

    1. Felix Wellschmied, 2021. "The welfare effects of asset mean‐testing income support," Quantitative Economics, Econometric Society, vol. 12(1), pages 217-249, January.
    2. Rhee, Serena, 2020. "Disability and Occupational Labor Transitions: Evidence from South Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 42(3), pages 53-85.
    3. Conesa, Juan Carlos & Costa, Daniela & Kamali, Parisa & Kehoe, Timothy J. & Nygard, Vegard M. & Raveendranathan, Gajendran & Saxena, Akshar, 2018. "Macroeconomic effects of Medicare," The Journal of the Economics of Ageing, Elsevier, vol. 11(C), pages 27-40.
    4. Anne M. Garvey & Manuel Ventura-Marco & Carlos Vidal-Meliá, 2021. "Does the pension system’s income statement really matter? A proposal for an NDC scheme with disability and minimum pension benefits," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 292-310, January.
    5. Mecikovsky, Ariel & Wellschmied, Felix, 2016. "Wage Risk, Employment Risk and the Rise in Wage Inequality," IZA Discussion Papers 10451, Institute of Labor Economics (IZA).
    6. David Wiczer & Amanda Michaud, 2017. "The Disability Option: Labor Market Dynamics with Macroeconomic and Health Risks," 2017 Meeting Papers 1459, Society for Economic Dynamics.

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    More about this item

    Keywords

    Disability Insurance; Vocational criteria; Demographic decomposition;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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