Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt
AbstractWe present the first causal estimates of the effect of Social Security Disability Insurance benefit receipt on labor supply using all program applicants. We use new administrative data to match applications to disability examiners, and exploit variation in examiners’ allowance rates as an instrument for benefit receipt. We find that among the estimated 23% of applicants on the margin of program entry, employment would have been 28 percentage points higher had they not received benefits. The effect is heterogeneous, ranging from no effect for those with more severe impairments to 50 percentage points for entrants with relatively less severe impairments.
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Bibliographic InfoPaper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp241.
Length: 47 pages
Date of creation: Aug 2012
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Other versions of this item:
- Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2010. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," Working Papers 853, RAND Corporation Publications Department.
- NEP-ALL-2011-02-05 (All new papers)
- NEP-HEA-2011-02-05 (Health Economics)
- NEP-IAS-2011-02-05 (Insurance Economics)
- NEP-LAB-2011-02-05 (Labour Economics)
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