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An Empirical Analysis of the Social Security Disability Application, Appeal, and Award Process

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Author Info
Hugo Benitez-Silva (Yale University)
Moshe Buchinsky (Brown University)
Hiu-Man Chan (Yale University)
John Rust (Yale University)
Sofia Sheivasser (Yale University)

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Abstract

We provide an empirical analysis of the Social Security disability application, award, and appeal process using the Health and Retirement Survey. We show that the appeal option increases the award probability from 46\% to 73\%. However, this comes at the cost of significant delays: the duration between application and award is over three times longer for those who are awarded benefits after one or more stages of appeal. Our results reveal the importance of self-selection in application and appeal decisions. In particular, an individual's self- assessed disability status emerges as one of the most powerful predictors of application, appeal, and award decisions.

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Publisher Info
Paper provided by EconWPA in its series Public Economics with number 9712001.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 30 pages
Date of creation: 03 Dec 1997
Date of revision: 16 Feb 1998
Handle: RePEc:wpa:wuwppe:9712001

Note: TeX file, Postscript version submitted, 30 pages
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Web page: http://129.3.20.41

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Find related papers by JEL classification:
H5 - Public Economics - - National Government Expenditures and Related Policies

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References listed on IDEAS
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. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
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  2. Kreider, Brent & Riphahn, Regina, 1997. "Applications to the US Disability Program: A Semiparametric Approach," CEPR Discussion Papers 1559, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. John Rust, 1997. "Using Randomization to Break the Curse of Dimensionality," Econometrica, Econometric Society, vol. 65(3), pages 487-516, May.
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  4. Timothy Waidmann & John Bound & Michael Schoenbaum, 1995. "The Illusion of Failure: Trends in the Self-Reported Health of the U.S. Elderly," NBER Working Papers 5017, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. John Bound, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," NBER Working Papers 2816, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Parsons, Donald O, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Comment," American Economic Review, American Economic Association, vol. 81(5), pages 1419-26, December. [Downloadable!] (restricted)
  7. Jianting Hu & Kajal Lahiri & Denton R. Vaughan & Bernard Wixon, 2001. "A Structural Model Of Social Security'S Disability Determination Process," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 348-361, May. [Downloadable!] (restricted)
  8. Haveman, Robert & de Jong, Philip & Wolfe, Barbara, 1991. "Disability Transfers and the Work Decision of Older Men," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 939-49, August. [Downloadable!] (restricted)
  9. Kreider, Brent, 2002. "Latent Work Disability and Reporting Bias," Staff General Research Papers 5185, Iowa State University, Department of Economics.
  10. John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment," NBER Working Papers 5159, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Parsons, Donald O, 1982. "The Male Labour Force Participation Decision: Health, Reported Health, and Economic Incentives," Economica, London School of Economics and Political Science, vol. 49(193), pages 81-91, February. [Downloadable!] (restricted)
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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. Mark Duggan & Perry Singleton & Jae Song, 2005. "Aching to Retire? The Rise in the Full Retirement Age and its Impact on the Disability Rolls," NBER Working Papers 11811, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Brent Kreider & John V. Pepper, 2002. "Disability and Employment: Reevaluating the Evidence in Light of Reporting Errors," Working Papers, Center for Retirement Research at Boston College 2002-06, Center for Retirement Research. [Downloadable!]
    Other versions:
  3. Brunello, Giorgio & Michaud, Pierre-Carl & Sanz-de-Galdeano, Anna, 2008. "The Rise in Obesity across the Atlantic: An Economic Perspective," IZA Discussion Papers 3529, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Richard V. Burkhauser & Timothy M. Smeeding, 2000. "Microdata Panel Data and Public Policy: National and Cross-National Perspectives," Center for Policy Research Working Papers 23, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  5. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, . "A sequential model for older workers’ labor transitions after a health shock," Working Papers 2005-23, FEDEA. [Downloadable!]
    Other versions:
  6. Olivia S. Mitchell & John W.R. Phillips, 2002. "Applications, Denials, and Appeals for Social Security Disability Insurance," Working Papers wp032, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
  7. Chuanming Gao & Kajal Lahiri & Bernard Wixon, 2000. "Value of Sample Separation Information in a Sequential Probit Model: Another Look at SSA's Disability Determination Process," Econometric Society World Congress 2000 Contributed Papers 0340, Econometric Society. [Downloadable!]
  8. 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!]
  9. Annemiek van VUren & Daniël van Vuuren, 2005. "Financial incentives in disability insurance in the Netherlands," CPB Discussion Papers 45, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
    Other versions:
  10. John Pepper & Brent Kreider, 2001. "Inferring Disability Status from Corrupt Data," Virginia Economics Online Papers 354, University of Virginia, Department of Economics. [Downloadable!]
    Other versions:
  11. 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!]
  12. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, 2006. "A sequential model of older workers' labor force transitions after a health shock," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 1033-1054. [Downloadable!]
  13. Johansson, Per & Skedinger, Per, 2005. "Are Objective, Official Measures of Disability Reliable?," Working Paper Series 643, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  14. Hakola, Tuulia, 2002. "Alternative Approaches to Model Withdrawals from the Labour Market – A Literature Review," Working Paper Series 2003:4, Uppsala University, Department of Economics. [Downloadable!]
  15. José Ignacio García & Alfonso R. Sánchez Martín, 2008. "Social security and the search behaviour of workers approaching retirement," Economic Working Papers at Centro de Estudios Andaluces E2008/10, Centro de Estudios Andaluces. [Downloadable!]
    Other versions:
  16. John Bound & Richard Burkhauser & Austin Nichols, 2001. "Tracking the Household Income of SSDI and SSI Applicants," Working Papers wp009, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
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