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The timing of disability insurance application: a choice-based semiparametric hazard model

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Author Info
Richard V. Burkhauser
J.S. Butler
Yang-Woo Kim

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Abstract

We use a choice-based subsample of Social Security Disability Insurance applicants from the 1978 Social Security Survey of Disability and Work to test the importance of policy variables on the timing of application for disability insurance benefits following the onset of a work limiting health condition. We correct for choice-based sampling by extending the Manski-Lerman (1977) correction to the likelihood function of our continuous time hazard model defined with semiparametric unmeasured heterogeneity and find that this correction significantly affects the results. We find that economic variables-the size of the disability benefit, expected wage earnings and accommodation-matter.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1996-005.

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Date of creation: 1996
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Handle: RePEc:fip:fedlwp:1996-005

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Keywords: Insurance ; Social security;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November. [Downloadable!] (restricted)
  2. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February. [Downloadable!] (restricted)
  3. Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267. [Downloadable!] (restricted)
  4. Parsons, Donald O, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Comment," American Economic Review, American Economic Association, vol. 81(5), pages 1419-26, December. [Downloadable!] (restricted)
  5. Jonathan S. Leonard, 1979. "The Social Security Disability Program and Labor Force Participation," NBER Working Papers 0392, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Jonathan S. Leonard, 1985. "Labor Supply Incentives and Disincentives for the Disabled," NBER Working Papers 1744, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Bound, John, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Reply," American Economic Review, American Economic Association, vol. 81(5), pages 1427-34, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Richard V. Burkhauser & Joseph F. Quinn, 1997. "Implementing Pro-Work Policies for Older Americans in the Twenty-First Century," Boston College Working Papers in Economics 378, Boston College Department of Economics. [Downloadable!]
  2. Richard V. Burkhauser & Joseph F. Quinn, 1997. "Pro-Work Policy Proposals for Older Americans in the 21st Century," Center for Policy Research Policy Briefs 9, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
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