Labor Supply, Disability Benefits and Mental Illness
AbstractIn this paper we build and estimate a structural labor supply model that explicitly models the budget constraint facing mentally ill individuals eligible for SSI benefits. Our results suggest that the labor supply behavior of this group is not very responsive to wage changes. This suggests that it may be non-economic factors that drive labor supply behavior of this group. Our structural model allows for policy simulations. These simulations indicate that raising the implicit tax rate on earnings of subsidizing wages may increase labor supply among this group, albeit by modest amounts.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 25 (1999)
Issue (Month): 3 (Summer)
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Disability; Labor Supply; Policy;
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- I12 - Health, Education, and Welfare - - Health - - - Health Production
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- Michele Campolieti & Morley Gunderson & Harry Krashinsky, 2007. "Labor Supply Decisions of Disabled Male Workers," Journal of Labor Research, Springer, vol. 28(3), pages 502-514, July.
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