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An Economic Analysis of the Operation of Social Security Disability Insurance

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  • Howard P. Marvel
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    Abstract

    Social Security Disability Insurance (DI) is federally financed but state administered. States vary widely both in benefit application rates and the rates at which applications are denied. Since the decision to apply depends on the likelihood of qualifying for benefits and since denial rates are influenced by a state's applicant pool, a simultaneous model of application and denial rates is developed in this paper. In addition, recent DI funding problems have induced substantial tightening of applicant screening, at least in some states. Estimates are presented which suggest that while this change may have eliminated some unqualified applicants, it is also likely to have increased cross-state inequities in screening.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 17 (1982)
    Issue (Month): 3 ()
    Pages: 393-412

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    Handle: RePEc:uwp:jhriss:v:17:y:1982:i:3:p:393-412

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. Jonathan Gruber & Jeffrey D. Kubik, 1994. "Disability Insurance Rejection Rates and the Labor Supply of Older Workers," NBER Working Papers 4941, National Bureau of Economic Research, Inc.
    2. Gruber, Jonathan & Kubik, Jeffrey D., 1997. "Disability insurance rejection rates and the labor supply of older workers," Journal of Public Economics, Elsevier, vol. 64(1), pages 1-23, April.
    3. Jonathan Gruber, 1996. "Disability Insurance Benefits and Labor Supply," NBER Working Papers 5866, National Bureau of Economic Research, Inc.
    4. Lucie Schmidt, 2013. "The New Safety Net? Supplemental Security Income after Welfare Reform," Department of Economics Working Papers 2013-07, Department of Economics, Williams College.
    5. Timothy Waidman & John Bound & Austin Nichols, 2003. "Disability Benefits as Social Insurance: Tradeoffs Between Screening Stringency and Benefit Generosity in Optimal Program Design," Working Papers wp042, University of Michigan, Michigan Retirement Research Center.

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