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The Role of Information in Disability Insurance Application: An Analysis of the Social Security Statement Phase-In

Author

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  • Philip Armour

Abstract

This paper exploits a natural experiment in information provision on US Disability Insurance (DI) applications: the Social Security statement. Although the effect of the statement on DI application was negligible in the general health and retirement study population, among those previously reporting a work limitation, biennial DI application rates approximately doubled. This effect was driven by previously uninformed individuals. Additional analyses show these were new applicants and were no less likely to be accepted onto DI, accounting for a substantial fraction of the rise in DI rolls from 1994 to 2004 and indicating the importance of informational frictions in disability policymaking.

Suggested Citation

  • Philip Armour, 2018. "The Role of Information in Disability Insurance Application: An Analysis of the Social Security Statement Phase-In," American Economic Journal: Economic Policy, American Economic Association, vol. 10(3), pages 1-41, August.
    • Handle: RePEc:aea:aejpol:v:10:y:2018:i:3:p:1-41
    Note: DOI: 10.1257/pol.20160605
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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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