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Unemployment Insurance and Disability Insurance in the Great Recession

In: Labor Markets in the Aftermath of the Great Recession

Author

Listed:
  • Andreas I. Mueller
  • Jesse Rothstein
  • Till M. von Wachter

Abstract

Social Security Disability Insurance (SSDI) awards rise during recessions. If marginal applicants are able to work but unable to find jobs, countercyclical Unemployment Insurance (UI) benefit extensions may reduce SSDI uptake. Exploiting UI extensions in the Great Recession as a source of variation, we find no indication that expiration of UI benefits causes SSDI applications and can rule out effects of meaningful magnitude. A supplementary analysis finds little overlap between the two programs' recipient populations: only 28% of SSDI awardees had any labor force attachment in the prior calendar year, and of those, only 4% received UI.
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Suggested Citation

  • Andreas I. Mueller & Jesse Rothstein & Till M. von Wachter, 2013. "Unemployment Insurance and Disability Insurance in the Great Recession," NBER Chapters, in: Labor Markets in the Aftermath of the Great Recession, pages 445-475, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:13277
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    1. Saez, Emmanuel & Landais, Camille & Michaillat, Pascal, 2010. "Optimal Unemployment Insurance over the Business Cycle," CEPR Discussion Papers 8132, C.E.P.R. Discussion Papers.
    2. Jesse Rothstein & Robert G. Valletta, 2017. "Scraping by: Income and Program Participation After the Loss of Extended Unemployment Benefits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(4), pages 880-908, September.
    3. Matthew S. Rutledge, 2011. "The Impact of Unemployment Insurance Extensions on Disability Insurance Application and Allowance Rates," Working Papers, Center for Retirement Research at Boston College wp2011-17, Center for Retirement Research, revised Oct 2011.
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    6. Andreas I. Mueller & Jesse Rothstein & Till M. von Wachter, 2016. "Unemployment Insurance and Disability Insurance in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 445-475.
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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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