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A Structural Model Of Social Security'S Disability Determination Process

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  • Jianting Hu
  • Kajal Lahiri
  • Denton R. Vaughan
  • Bernard Wixon

Abstract

We estimate a multistage sequential logit model reflecting the structure of the disability determination process of the Social Security Administration (SSA). The model is estimated using household survey information exact-matched to SSA records on disability adjudications from 1989 to 1993. Under program provisions, different criteria dictate outcomes at different steps of the determination process. We find that, without the multistaged structural approach, effects of many important health, disability, and vocational factors are not readily discernible. As a result, split-sample predictions of overall allowance rates from the sequential model perform considerably better than do those for the conventional allowed/denied logit regression. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Jianting Hu & Kajal Lahiri & Denton R. Vaughan & Bernard Wixon, 2001. "A Structural Model Of Social Security'S Disability Determination Process," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 348-361, May.
  • Handle: RePEc:tpr:restat:v:83:y:2001:i:2:p:348-361
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    Citations

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    Cited by:

    1. Eric French & Jae Song, 2014. "The Effect of Disability Insurance Receipt on Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 291-337, May.
    2. Hugo Benitez-Silva & Moshe Buchinsky & John Rust, 2004. "How Large are the Classification Errors in the Social Security Disability Award Process?," NBER Working Papers 10219, National Bureau of Economic Research, Inc.
    3. Laurence, JACQUET, 2006. "Optimal disability assistance when fraud and stigma matter," Discussion Papers (ECON - Département des Sciences Economiques) 2006052, Université catholique de Louvain, Département des Sciences Economiques.
    4. Lahiri, Kajal & Song, Jae & Wixon, Bernard, 2008. "A model of Social Security Disability Insurance using matched SIPP/Administrative data," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 4-20, July.
    5. Hugo Benítez-Silva & Moshe Buchinsky & Hiu Man Chan & Sofia Cheidvasser & John Rust, 2004. "How large is the bias in self-reported disability?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 649-670.
    6. Lahiri, Kajal & Gao, Jian, 2002. "Bayesian analysis of nested logit model by Markov chain Monte Carlo," Journal of Econometrics, Elsevier, vol. 111(1), pages 103-133, November.
    7. Benitez-Silva, Hugo & Buchinsky, Moshe & Chan, Hiu Man & Rust, John & Sheidvasser, Sofia, 1999. "An empirical analysis of the social security disability application, appeal, and award process," Labour Economics, Elsevier, vol. 6(2), pages 147-178, June.
    8. Erin M. Godtland & Michele Grgich & Carol Dawn Petersen & Douglas M. Sloane & Ann T Walker, 2007. "Racial Disparities In Federal Disability Benefits," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 27-45, January.
    9. Kajal Lahiri & Zulkarnain Pulungan, 2006. "Health Inequality and Its Determinants in New York," Discussion Papers 06-03, University at Albany, SUNY, Department of Economics.
    10. Chen, Susan & van der Klaauw, Wilbert, 2008. "The work disincentive effects of the disability insurance program in the 1990s," Journal of Econometrics, Elsevier, vol. 142(2), pages 757-784, February.
    11. Laurence Jacquet, 2010. "Take it or Leave it: Take-up, Optimal Transfer Programs, and Monitoring," CESifo Working Paper Series 3018, CESifo Group Munich.
    12. Laurence JACQUET, 2009. "Take it or Leave it : Optimal Transfer Programs, Monitoring and Takeup," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    13. Laurence Jacquet, 2014. "Tagging and redistributive taxation with imperfect disability monitoring," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(2), pages 403-435, February.
    14. Olivia S. Mitchell & John W.R. Phillips, 2000. "Retirement Responses to Early Social Security Benefit Reductions," NBER Working Papers 7963, National Bureau of Economic Research, Inc.
    15. Jacquet, Laurence, 2006. "Optimal disability assistance when fraud and stigma matter," Queen's Economics Department Working Papers 273574, Queen's University - Department of Economics.
    16. Michel, DE VROEY, 2006. "Getting Rid of Keynes ? A reflection on the history of macroeconomics," Discussion Papers (ECON - Département des Sciences Economiques) 2006051, Université catholique de Louvain, Département des Sciences Economiques.
    17. Moore, Timothy J., 2015. "The employment effects of terminating disability benefits," Journal of Public Economics, Elsevier, vol. 124(C), pages 30-43.
    18. Olivia S. Mitchell & John W.R. Phillips, 2002. "Applications, Denials, and Appeals for Social Security Disability Insurance," Working Papers wp032, University of Michigan, Michigan Retirement Research Center.
    19. Obubuafo, Joyce & Gillespie, Jeffrey M. & Paudel, Krishna P. & Kim, Seon-Ae, 2006. "Knowledge, Application and Adoption of Best Management Practices by Cattle Farmers under the Environmental Quality Incentives Program - A Sequential Analysis," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35307, Southern Agricultural Economics Association.

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