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Factors Determining Participation of the Elderly in SSI

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  • Kathleen McGarry
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    Abstract

    The same low participation rates which plague many welfare programs have been observed among the elderly eligible for Supplemental Security Income (SSI). A number of hypotheses have been offered to explain the low enrollment, but none has attracted universal acceptance. In this paper I use the Survey of Income and Program Participation (SIPP) to examine the participation of the elderly in SSI. Because of the high quality of the data, I am able to determine eligibility more accurately than in most previous studies. In this sample, only 56 percent of those whom I determine to be eligible for SSI are presently receiving benefits. I model the decision to participate as a probit equation, but modify the likelihood function to account for measurement error in the expected benefit. The results indicate that participation is primarily determined by the financial situation of the eligible individuals. Although all those eligible for SSI are poor, those with little in the way of other resources are significantly more likely to participate. This finding differs from widespread beliefs that eligible individuals are discouraged by the difficulty of the application process, or that many are uninformed about the program.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5250.

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    Date of creation: Sep 1995
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    Publication status: published as Journal of Human Resources, 1996, vol. 31.
    Handle: RePEc:nbr:nberwo:5250

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    1. Robert Moffitt & Barbara Wolfe, 1990. "The Effect of the Medicaid Program on Welfare Participation and Labor Supply," NBER Working Papers 3286, National Bureau of Economic Research, Inc.
    2. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
    3. Fraker, Thomas & Moffitt, Robert, 1988. "The effect of food stamps on labor supply : A bivariate selection model," Journal of Public Economics, Elsevier, vol. 35(1), pages 25-56, February.
    4. Strauss, Robert P., 1977. "Information and participation in a public transfer program," Journal of Public Economics, Elsevier, vol. 8(3), pages 385-396, December.
    5. Jennifer L. Warlick, 1982. "Participation of the Aged in SSI," Journal of Human Resources, University of Wisconsin Press, vol. 17(2), pages 236-260.
    6. Yatchew, Adonis & Griliches, Zvi, 1985. "Specification Error in Probit Models," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 134-39, February.
    7. Newey, Whitney K., 1984. "A method of moments interpretation of sequential estimators," Economics Letters, Elsevier, vol. 14(2-3), pages 201-206.
    8. Michael D. Hurd & David A. Wise, 1987. "The Wealth and Poverty of Widows: Assets Before and After the Husband's Death," NBER Working Papers 2325, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Yelowitz, Aaron S, 2000. "Using the Medicare Buy-In Program to Estimate the Effect of Medicaid on SSI Participation," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 38(3), pages 419-41, July.
    2. Wei-Yin Hu, 1996. "Elderly Immigrants on Welfare," UCLA Economics Working Papers 750, UCLA Department of Economics.
    3. Hauge, Janice A. & Jamison, Mark A. & Todd Jewell, R., 2008. "Discounting telephone service: An examination of participation in the Lifeline Assistance Program using panel data," Information Economics and Policy, Elsevier, vol. 20(2), pages 135-149, June.

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