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The Health and Earnings of Rejected Disability Insurance Applicants

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Author Info
John Bound
Abstract

Applicants for Social Security Disability Benefits who fail to pass the medical screening form a natural 'control' group for beneficiaries. Data drawn from the 1972 and 1978 surveys of the disabled done for the Social Security Administration show that fewer than 50% of rejected male applicants work. Typical earnings of those that do are less than 50% of median earnings for other men their age. These data cast doubt on recent econometric work which suggests that the disincentive effects of DI have been substantial.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2816.

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Date of creation: Aug 1989
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Publication status: published as The American Economic Review, Vol. 79, No. 3, pp. 482-503, (June 1989).
Handle: RePEc:nbr:nberwo:2816

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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. 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)
  2. James M. Poterba & Lawrence H. Summers, 1987. "Public Policy Implications of Declining Old-Age Mortality," NBER Reprints 0934, National Bureau of Economic Research, Inc.
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  3. Michael Grossman, 1973. "The Correlation Between Health and Schooling," NBER Working Papers 0022, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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