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Tracking the Household Income of SSDI and SSI Applicants

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Author Info
John Bound (University of Michigan and NBER)
Richard Burkhauser (Cornell University)
Austin Nichols (University of Michigan)

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Abstract

Using panel data from the Survey of Income and Program Participation linked to Social Security Administration disability determination records we trace the pattern of household income and the sources of that income from 38 months prior to 39 months following application for Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI). We find that the average applicant’s labor earnings declines dramatically beginning six month before application but the average applicant’s household income drops much less dramatically both in the months just before or just after application and over the next three years, and does so even for those denied benefits. However, we also found substantial heterogeneity in household income outcomes in both the SSDI and SSI applicant population. Our quantile regressions suggest that higher income households experience greater percentage declines in their post-application income. Such results are consistent with the lower replacement rate for higher earners established in the SSDI program and the low absolute level of protection provided to all SSI applicants regardless of income prior to application.

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File URL: http://www.mrrc.isr.umich.edu/publications/Papers/pdf/wp009.pdf
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Publisher Info
Paper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp009.

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Length: 68 pages
Date of creation: May 2001
Date of revision:
Handle: RePEc:mrr:papers:wp009

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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. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier. [Downloadable!] (restricted)
  2. Mary C. Daly & Richard V. Burkhauser, 2000. "The Supplemental Security Income program," Working Papers in Applied Economic Theory 2001-06, Federal Reserve Bank of San Francisco. [Downloadable!]
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  3. Hugo Benitez-Silva & Moshe Buchinsky & Hiu-Man Chan & John Rust & Sofia Sheivasser, 1997. "An Empirical Analysis of the Social Security Disability Application, Appeal, and Award Process," Public Economics 9712001, EconWPA, revised 16 Feb 1998. [Downloadable!]
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(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. Susan Chen & Wilbert van der Klaauw, 2006. "The Work Disincentive Effects of the Disability Insurance Program in the 1990s," Working Papers 06-05, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  2. Richard V. Burkhauser & Mary C. Daly, 2002. "Policy Watch: U.S. Disability Policy in a Changing Environment," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 213-224, Winter. [Downloadable!] (restricted)
  3. Burkhauser, Richard V. & Butler, J. S. & Gulcin Gumus, 2003. "Option Value and Dynamic Programming Model Estimates of Social Security Disability Insurance Application Timing," IZA Discussion Papers 941, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Richard V. Burkhauser & J. S. Butler & Gulcin Gumus, 2004. "Dynamic programming model estimates of Social Security Disability Insurance application timing," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 671-685. [Downloadable!]
  5. Richard V. Burkhauser & Mary C. Daly, 2001. "United States disability policy in a changing environment," Working Papers in Applied Economic Theory 2002-21, Federal Reserve Bank of San Francisco. [Downloadable!]
  6. David Autor & Mark Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," NBER Working Papers 12436, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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