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Vocational considerations and trends in Social Security Disability

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  • Michaud, Amanda
  • Nelson, Jaeger
  • Wiczer, David

Abstract

Along with health, Social Security Disability Insurance (SSDI) evaluates work-limiting disability by considering vocational factors including age, education, and past work experience. SSDI determinations based on these factors have grown threefold since 1985. We use a unique state-level data-set to estimate how vocational demographics relate to SSDI awards and then assess the contribution of demographic change to SSDI trends. Although workers in their 50s are associated with higher SSDI award rates, secular increases in educational attainment should have offset the impact of population aging on rising SSDI claims, particularly those with vocational considerations.

Suggested Citation

  • Michaud, Amanda & Nelson, Jaeger & Wiczer, David, 2018. "Vocational considerations and trends in Social Security Disability," The Journal of the Economics of Ageing, Elsevier, vol. 11(C), pages 41-51.
  • Handle: RePEc:eee:joecag:v:11:y:2018:i:c:p:41-51
    DOI: 10.1016/j.jeoa.2016.12.001
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    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X16300731
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    References listed on IDEAS

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    1. Norma B. Coe & Kelly Haverstick & Alicia H. Munnell & Anthony Webb, 2011. "What Explains State Variation in SSDI Application Rates?," Working Papers, Center for Retirement Research at Boston College wp2011-23, Center for Retirement Research, revised Nov 2011.
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    Cited by:

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    2. Mecikovsky, Ariel & Wellschmied, Felix, 2016. "Wage Risk, Employment Risk and the Rise in Wage Inequality," IZA Discussion Papers 10451, Institute of Labor Economics (IZA).
    3. Rhee, Serena, 2020. "Disability and Occupational Labor Transitions: Evidence from South Korea," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 42(3), pages 53-85.
    4. Conesa, Juan Carlos & Costa, Daniela & Kamali, Parisa & Kehoe, Timothy J. & Nygard, Vegard M. & Raveendranathan, Gajendran & Saxena, Akshar, 2018. "Macroeconomic effects of Medicare," The Journal of the Economics of Ageing, Elsevier, vol. 11(C), pages 27-40.
    5. Anne M. Garvey & Manuel Ventura-Marco & Carlos Vidal-Meliá, 2019. "Does the pension system’s income statement really matter? A proposal for an NDC scheme with disability and minimum pension benefits," Documentos de Trabajo del ICAE 2019-22, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.

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    More about this item

    Keywords

    Disability Insurance; Vocational criteria; Demographic decomposition;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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