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The Labor Market Consequences of Receiving Disability Benefits during Childhood

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  • Michael Levere

Abstract

I estimate the labor market effects of gaining eligibility for Supplemental Security Income (SSI) disability benefits during childhood. A Supreme Court decision eased the criteria to be considered disabled, disproportionately affecting child applicants with mental disorders. For individuals with mental disorders, each additional year of exposure to eased standards during childhood increased their SSI receipt by 0.3 years. The additional benefit receipt reduced cumulative labor market earnings through age 30 by $1,600 for each additional year of exposure for those with mental disorders. Importantly, this does not address the full range of outcomes that may be affected by receiving benefits.

Suggested Citation

  • Michael Levere, 2021. "The Labor Market Consequences of Receiving Disability Benefits during Childhood," Journal of Human Resources, University of Wisconsin Press, vol. 56(3), pages 850-877.
    • Handle: RePEc:uwp:jhriss:v:56:y:2021:i:3:p:850-877
    Note: DOI: 10.3368/jhr.56.3.1118-9883R1
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    File URL: http://jhr.uwpress.org/cgi/reprint/56/3/850
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    Cited by:

    1. von Hinke, Stephanie & Rice, Nigel & Tominey, Emma, 2022. "Mental health around pregnancy and child development from early childhood to adolescence," Labour Economics, Elsevier, vol. 78(C).

    More about this item

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J1 - Labor and Demographic Economics - - Demographic Economics

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