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Disability, earnings, income and consumption

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  • Meyer, Bruce D.
  • Mok, Wallace K.C.

Abstract

We study the well-being of disabled men and the economic benefits of disability insurance. Using longitudinal data for 1968–2015 for male household heads, we determine the prevalence of working-age disability, its association with a wide range of economic outcomes including, earnings, income, poverty, consumption, wealth and time-use. We disaggregate disabled men based on the persistence and severity of work-limiting conditions, and find that disability is common and associated with poor economic outcomes. The outcomes differ sharply by disability group. We then provide the range of behavioral elasticities and preference parameters consistent with current disability compensation being optimal in the Baily-Chetty framework.

Suggested Citation

  • Meyer, Bruce D. & Mok, Wallace K.C., 2019. "Disability, earnings, income and consumption," Journal of Public Economics, Elsevier, vol. 171(C), pages 51-69.
  • Handle: RePEc:eee:pubeco:v:171:y:2019:i:c:p:51-69
    DOI: 10.1016/j.jpubeco.2018.06.011
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    Cited by:

    1. Hamish Low & Luigi Pistaferri, 2020. "Disability Insurance: Theoretical Trade‐Offs and Empirical Evidence," Fiscal Studies, John Wiley & Sons, vol. 41(1), pages 129-164, March.
    2. Katie M. Jajtner & Sophie Mitra & Christine Fountain & Austin Nichols, 0. "Rising Income Inequality Through a Disability Lens: Trends in the United States 1981–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 0, pages 1-34.
    3. Davillas, Apostolos & Pudney, Stephen, 2020. "Biomarkers, disability and health care demand," Economics & Human Biology, Elsevier, vol. 39(C).
    4. Katie M. Jajtner & Sophie Mitra & Christine Fountain & Austin Nichols, 2020. "Rising Income Inequality Through a Disability Lens: Trends in the United States 1981–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 81-114, August.
    5. Siha Lee, 2020. "Spousal Labor Supply, Caregiving, and the Value of Disability Insurance," Department of Economics Working Papers 2020-08, McMaster University.
    6. Tianxin Pan & Michael Palmer & Ajay Mahal & Peter Annear & Barbara McPake, 2020. "The long‐run effects of noncommunicable disease shocks," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1549-1565, December.
    7. Jones, Melanie K. & McVicar, Duncan, 2020. "Estimating the impact of disability onset on employment," Social Science & Medicine, Elsevier, vol. 255(C).
    8. Haeruddin Saleh & Batara Surya & H. Hamsina, 2020. "Implementation of Sustainable Development Goals to Makassar Zero Waste and Energy Source," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 530-538.

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