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The Impact of Rehabilitation and Counseling Services on the Labor Market Activity of Social Security Disability Insurance (SSDI) Beneficiaries

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  • Robert R. Weathers II
  • Michelle Stegman Bailey

Abstract

We use data from a social experiment to estimate the impact of a rehabilitation and counseling program on the labor market activity of newly entitled Social Security Disability Insurance (SSDI) beneficiaries. Our results indicate that the program led to a 4.6 percentage point increase in the receipt of employment services within the first year following random assignment and a 5.1 percentage point increase in participation in the Social Security Administration's Ticket to Work program within the first three years following random assignment. The program led to a 5.3 percentage point increase, or almost 50 percent increase, in employment, and an $831 increase in annual earnings in the second calendar year after the calendar year of random assignment. The employment and earnings impacts are smaller and not statistically significant in the third calendar year following random assignment, and we describe SSDI rules that are consistent with this finding. Our findings indicate that disability reform proposals focusing on restoring the work capacity of people with disabilities can increase the disability employment rate.

Suggested Citation

  • Robert R. Weathers II & Michelle Stegman Bailey, 2014. "The Impact of Rehabilitation and Counseling Services on the Labor Market Activity of Social Security Disability Insurance (SSDI) Beneficiaries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(3), pages 623-648, June.
    • Handle: RePEc:wly:jpamgt:v:33:y:2014:i:3:p:623-648
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    File URL: http://hdl.handle.net/10.1002/pam.21763
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    Cited by:

    1. Daniel Gubits & Judy Geyer & Denise Hoffman & Sarah Croake & Utsav Kattel & David Judkins & Stephen Bell & David Stapleton, "undated". "BOND Implementation and Evaluation: 2015 Stage 2 Interim Process, Participation, and Impact Report," Mathematica Policy Research Reports 933095e3c2b74e388a05cd030, Mathematica Policy Research.
    2. Marios Michaelides & Peter Mueser, 2020. "The Labor Market Effects of US Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1099-1140.
    3. Marios Michaelides & Peter Mueser, 2018. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(3), pages 546-570, June.
    4. Zafar E. Nazarov, 2016. "Can Benefits and Work Incentives Counseling be a Path to Future Economic Self-Sufficiency for Individuals with Disabilities?," Journal of Labor Research, Springer, vol. 37(2), pages 211-234, June.
    5. Michelle Derr & Denise Hoffman & Jillian Berk & Ann Person & David Stapleton & Sarah Croake & Christopher Jones & Jonathan McCay, "undated". "BOND Implementation and Evaluation: Process Study Report," Mathematica Policy Research Reports a3e9aa583058444a943de5034, Mathematica Policy Research.
    6. Daniel Gubits & Judy Geyer & Denise Hoffman & Sarah Croake & Utsav Kattel & David Judkins & Stephen Bell & David Stapleton, "undated". "BOND Implementation and Evaluation: 2015 Stage 2 Interim Process, Participation, and Impact Report," Mathematica Policy Research Reports 0fd873d3819144e49a000c346, Mathematica Policy Research.
    7. Judy Geyer & Daniel Gubits & Stephen Bell & Tyler Morrill & Denise Hoffman & Sarah Croake & Katie Morrison & David Judkins & David Stapleton, "undated". "BOND Implementation and Evaluation: 2017 Stage 2 Interim Process, Participation, and Impact Report," Mathematica Policy Research Reports 3200a977680046ed8df3b0e65, Mathematica Policy Research.

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