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Policy Watch: U.S. Disability Policy in a Changing Environment

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  • Richard V. Burkhauser
  • Mary C. Daly

Abstract

In this paper we provide a context for evaluating the goals and effectiveness of current disability policy. We review the Social Security Disability Insurance and Supplemental Security Income programs and examine trends in disability benefit receipt and employment among working-age people with disabilities. We discuss the difficulties in crafting efficient and equitable programs for this difficult to target, heterogeneous population. We conclude that changes in policy rather than in underlying health are most likely behind the increases in disability benefit receipt and the declines in employment of working-age people with disabilities over the 1990s business cycle.

Suggested Citation

  • Richard V. Burkhauser & Mary C. Daly, 2002. "Policy Watch: U.S. Disability Policy in a Changing Environment," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 213-224, Winter.
    • Handle: RePEc:aea:jecper:v:16:y:2002:i:1:p:213-224
    Note: DOI: 10.1257/0895330027067
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/0895330027067
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    References listed on IDEAS

    as
    1. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528, Elsevier.
    2. Richard V. Burkhauser & Mary C. Daly & Andrew J. Houtenville & Nigar Nargis, 2001. "Economic outcomes of working-age people with disabilities over the business cycle: an examination of the 1980s and 1990s," Working Paper Series 2001-07, Federal Reserve Bank of San Francisco.
    3. John Bound & Richard V Burkhauser & Austin Nichols, 2003. "Tracking The Household Income Of Ssdi And Ssi Applicants," Research in Labor Economics, in: Worker Well-Being and Public Policy, pages 113-158, Emerald Group Publishing Limited.
    4. Mary Daly & Richard V. Burkhauser, 2003. "The Supplemental Security Income Program," NBER Chapters, in: Means-Tested Transfer Programs in the United States, pages 79-140, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Viola Angelini & Danilo CAVAPOZZI & Omar PACCAGNELLA, 2010. "Dynamics of work disability reporting in Europe," "Marco Fanno" Working Papers 0104, Dipartimento di Scienze Economiche "Marco Fanno".
    2. David H. Autor & Mark Duggan & Kyle Greenberg & David S. Lyle, 2016. "The Impact of Disability Benefits on Labor Supply: Evidence from the VA's Disability Compensation Program," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 31-68, July.
    3. Arie Kapteyn & James P. Smith & Arthur VanSoest, 2005. "Vignettes and Self Reported Work Disability," Labor and Demography 0511005, University Library of Munich, Germany.
    4. Zafar E. Nazarov, 2016. "Can Benefits and Work Incentives Counseling be a Path to Future Economic Self-Sufficiency for Individuals with Disabilities?," Journal of Labor Research, Springer, vol. 37(2), pages 211-234, June.
    5. Kapteyn, Arie & Smith, James P. & van Soest, Arthur, 2008. "Dynamics of work disability and pain," Journal of Health Economics, Elsevier, vol. 27(2), pages 496-509, March.
    6. David H. Autor & Mark G. Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 71-96, Summer.
    7. Arie Kapteyn & James P. Smith & Arthur Van Soest, 2004. "Self-reported Work Disability in the US and The Netherlands," Working Papers WR-206, RAND Corporation.
    8. John F. Cogan & Olivia S. Mitchell, 2003. "Perspectives from the President's Commission on Social Security Reform," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 149-172, Spring.
    9. Bastian, Jacob E. & Jones, Maggie R., 2021. "Do EITC expansions pay for themselves? Effects on tax revenue and government transfers," Journal of Public Economics, Elsevier, vol. 196(C).
    10. Merkuryeva Irina, 2007. "The system of disability benefits in Russia. Estimation of targeting accuracy," EERC Working Paper Series 07-04e, EERC Research Network, Russia and CIS.
    11. Viola Angelini & Danilo Cavapozzi & Omar Paccagnella, 2012. "Cross-Country Differentials in Work Disability Reporting Among Older Europeans," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 105(2), pages 211-226, January.
    12. Kapteyn, Arie & Smith, James P. & van Soest, Arthur, 2008. "Dynamics of work disability and pain," Journal of Health Economics, Elsevier, pages 496-509.
    13. Richard V. Burkhauser & Mary C. Daly & Philip R. de Jong, 2008. "Curing the Dutch Disease: Lessons for United States Disability Policy," Working Papers wp188, University of Michigan, Michigan Retirement Research Center.
    14. Arie Kapteyn & James P. Smith & Arthur Van Soest, 2004. "Self-reported Work Disability in the US and The Netherlands," Working Papers 206, RAND Corporation.

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