The Importance of Accommodation on the Timing of Disability Insurance Applications: Results from the Survey of Disability and Work and the Health and Retirement Study
Using data from the 1978 Survey of Disability and Work and the 1992 Health and Retirement Study, we test the importance of accommodation and other policy variables on the timing of application for Social Security Disability Insurance benefits following the onset of a work-limiting condition. We correct for choice-based sampling in the Survey of Disability and Work by extending the Manski and Lerman (1977) correction to the likelihood function of our continuous time hazard model, we find that this correction significantly affects the results. Similar findings emerge from these two data sets. Accommodation significantly reduces the speed of application and more generous benefits increase the speed of applying for SSDI.