IDEAS home Printed from
   My bibliography  Save this article

Labor Supply, Disability Benefits and Mental Illness


  • Susan Averett

    () (Economics Department, Lafayette College)

  • Richard Warner

    () (Mental Health Center of Boulder County)

  • Jani Little

    () (Institute of Behavioral Science Data Analysis Center, University of Colorado)

  • Peter Huxley

    () (School of Psychiatry and Behavioural Sciences, University of Manchester)


In this paper we build and estimate a structural labor supply model that explicitly models the budget constraint facing mentally ill individuals eligible for SSI benefits. Our results suggest that the labor supply behavior of this group is not very responsive to wage changes. This suggests that it may be non-economic factors that drive labor supply behavior of this group. Our structural model allows for policy simulations. These simulations indicate that raising the implicit tax rate on earnings of subsidizing wages may increase labor supply among this group, albeit by modest amounts.

Suggested Citation

  • Susan Averett & Richard Warner & Jani Little & Peter Huxley, 1999. "Labor Supply, Disability Benefits and Mental Illness," Eastern Economic Journal, Eastern Economic Association, vol. 25(3), pages 279-288, Summer.
  • Handle: RePEc:eej:eeconj:v:25:y:1999:i:3:p:279-288

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Michele Campolieti & Morley Gunderson & Harry Krashinsky, 2007. "Labor Supply Decisions of Disabled Male Workers," Journal of Labor Research, Springer, vol. 28(3), pages 502-514, July.
    2. Judith A. Cook & Jane K. Burke-Miller & Dennis D. Grey, 2015. "Impact of Contingent Work on Subsequent Labor Force Participation and Wages of Workers with Psychiatric Disabilities," Mathematica Policy Research Reports dc9fe635fb3940d6a5740964f, Mathematica Policy Research.
    3. Judith A. Cook & Jane K. Burke-Miller & Dennis D. Grey, 2015. "Reasons for Job Separations Among People with Psychiatric Disabilities," Mathematica Policy Research Reports daa83bfb114348c39b9966d28, Mathematica Policy Research.
    4. repec:mpr:mprres:f04e33e27f994275b99d5fde53a20f57 is not listed on IDEAS

    More about this item


    Disability; Labor Supply; Policy;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:25:y:1999:i:3:p:279-288. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.