The Effects of Disability Insurance: Evidence From Social Security's Disabled-Widow Program
AbstractThis study measures the effect of disability insurance on labor supply and health insurance coverage. The effect is identified by a policy in 1990 that increased the generosity of Social Security’s disabled-widow program. Using data from the Current Population Survey, the results suggest that, in this context, disability benefits led to a one-to-one decline in labor force participation, employment, and private insurance coverage. The results imply that the demand for disability benefits may not reflect a latent demand for public health insurance. Key Words: disability insurance, health insurance, labor force participation, Social Security, widows JEL No. H55, J20
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Bibliographic InfoPaper provided by Center for Policy Research, Maxwell School, Syracuse University in its series Center for Policy Research Working Papers with number 148.
Length: 16 pages
Date of creation: Oct 2012
Date of revision:
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Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-01-07 (Economics of Ageing)
- NEP-ALL-2013-01-07 (All new papers)
- NEP-HEA-2013-01-07 (Health Economics)
- NEP-IAS-2013-01-07 (Insurance Economics)
- NEP-LAB-2013-01-07 (Labour Economics)
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