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The Accelerated Benefits Demonstration: Impacts on the Employment of Disability Insurance Beneficiaries


  • Michelle Stegman Baily
  • Robert R. Weathers II


We use data from the Accelerated Benefits demonstration to estimate the impacts of providing newly entitled disability insurance (DI) beneficiaries with health insurance and additional services during the DI program's 24-month Medicare waiting period. While health insurance alone did not increase employment, the additional employment services appeared to have positive short-term impacts on labor market activity. We find a statistically significant increase in employment and earnings in the second calendar year after random assignment; although these findings disappear in the third calendar year. Our results may have implications for disability reform proposals and provisions within the Affordable Care Act.

Suggested Citation

  • Michelle Stegman Baily & Robert R. Weathers II, 2014. "The Accelerated Benefits Demonstration: Impacts on the Employment of Disability Insurance Beneficiaries," American Economic Review, American Economic Association, vol. 104(5), pages 336-341, May.
  • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:336-41 Note: DOI: 10.1257/aer.104.5.336

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    References listed on IDEAS

    1. Richard Burkhauser & Mary C. Daly, 2011. "The Declining Work and Welfare of People with Disabilities," Books, American Enterprise Institute, number 7631.
    2. Charles Michalopoulos & David Wittenburg & Dina A. R. Israel & Jennifer Schore & Anne Warren & Aparajita Zutshi & Stephen Freedman & Lisa Schwartz, 2011. "The Accelerated Benefits Demonstration and Evaluation Project Impacts on Health and Employment at Twelve Months," Mathematica Policy Research Reports 00f10b2f7afb4f56b0e79bb01, Mathematica Policy Research.
    3. repec:mpr:mprres:7006 is not listed on IDEAS
    4. Weathers, Robert R. & Stegman, Michelle, 2012. "The effect of expanding access to health insurance on the health and mortality of Social Security Disability Insurance beneficiaries," Journal of Health Economics, Elsevier, vol. 31(6), pages 863-875.
    5. Robert R. Weathers II & Jeffrey Hemmeter, 2011. "The impact of changing financial work incentives on the earnings of Social Security Disability Insurance (SSDI) beneficiaries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(4), pages 708-728, September.
    6. repec:aei:rpbook:24945 is not listed on IDEAS
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    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination


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