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Explaining Applications to the U.S. Disability System: A Semiparametric Approach

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  • Brent Kreider
  • Regina T. Riphahn

Abstract

This study investigates the determinants of applications for U.S. disability benefits between 1986 and 1993 using a semiparametric discrete factor procedure separately for men and women. Approximating a dynamic optimization model, the estimation accounts for a variety of potential biases that were unaddressed in prior studies. Our results indicate different responses of men and women to variations in policy measures. Past labor earnings and fringe benefits as well as benefit eligibility and benefit amounts clearly affect application behavior.

Suggested Citation

  • Brent Kreider & Regina T. Riphahn, 2000. "Explaining Applications to the U.S. Disability System: A Semiparametric Approach," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 82-115.
    • Handle: RePEc:uwp:jhriss:v:35:y:2000:i:1:p:82-115
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    Cited by:

    1. Bound, John & Stinebrickner, Todd & Waidmann, Timothy, 2010. "Health, economic resources and the work decisions of older men," Journal of Econometrics, Elsevier, vol. 156(1), pages 106-129, May.
    2. Barbara Hanel, 2010. "Disability Pensions and Labor Supply," Working Papers 086, Bavarian Graduate Program in Economics (BGPE).
    3. 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.
    4. Iskhakov, Fedor, 2008. "Dynamic Programming Model of Health and Retirement," Memorandum 03/2008, Oslo University, Department of Economics.
    5. Michele Campolieti & James Goldenberg, 2007. "Disability Insurance Denial Rates and the Labor Force Participation of Older Men and Women in Canada," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(1), pages 59-75, March.
    6. Naoko Akashi-Ronquest & Paul Carrillo & Bruce Dembling & Steven Stern, 2011. "Measuring the biases in self-reported disability status: evidence from aggregate data," Applied Economics Letters, Taylor & Francis Journals, vol. 18(11), pages 1053-1060.
    7. Michele Campolieti, 2002. "Moral Hazard and Disability Insurance: On the Incidence of Hard-to-Diagnose Medical Conditions in the Canada/Quebec Pension Plan Disability Program," Canadian Public Policy, University of Toronto Press, vol. 28(3), pages 419-441, September.
    8. Gina Livermore & David Stapleton & Henry Claypool, "undated". "Costs and Benefits of Eliminating the Medicare Waiting Period for SSDI Beneficiaries," Mathematica Policy Research Reports 3a68e4d07af1446f9f08dd214, Mathematica Policy Research.
    9. Merkuryeva Irina, 2007. "The system of disability benefits in Russia. Estimation of targeting accuracy," EERC Working Paper Series 07-04e, EERC Research Network, Russia and CIS.
    10. Pagán, Ricardo, 2013. "Time allocation of disabled individuals," Social Science & Medicine, Elsevier, vol. 84(C), pages 80-93.
    11. Zantomio, Francesca, 2013. "Older people's participation in extra-cost disability benefits," Journal of Health Economics, Elsevier, vol. 32(1), pages 320-330.
    12. Duncan McVicar, 2008. "Why Have Uk Disability Benefit Rolls Grown So Much?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 114-139, February.
    13. Pudney, Stephen, 2009. "Participation in disability benefit programmes: a partial identification analysis of the British Attendance Allowance system," ISER Working Paper Series 2009-19, Institute for Social and Economic Research.
    14. Pagán Rodríguez, Ricardo, 2007. "Dynamic Analysis of Disability in Spain Using the European Community Household Panel/Análisis dinámico de la discapacidad en España con el Panel de Hogares de la Unión Europea," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 25, pages 499-522, Abril.
    15. Becker, Charles M. & Merkuryeva, Irina S., 2012. "Disability incidence and official health status transitions in Russia," Economics & Human Biology, Elsevier, vol. 10(1), pages 74-88.
    16. Paul Frijters & Michael A. Shields, 2001. "Welfare and Output Enhancing Moral Hazard: Disability Benefits and Endogenous Occupational Choice," Discussion Papers Series 445, School of Economics, University of Queensland, Australia.
    17. Hanel, Barbara, 2012. "The effect of disability pension incentives on early retirement decisions," Labour Economics, Elsevier, vol. 19(4), pages 595-607.
    18. Christensen, Vibeke Tornhøj & Datta Gupta, Nabanita, 2017. "Hearing loss and disability exit: Measurement issues and coping strategies," Economics & Human Biology, Elsevier, vol. 24(C), pages 80-91.
    19. Pilar García-Gómez & Hans-Martin Gaudecker & Maarten Lindeboom, 2011. "Health, disability and work: patterns for the working age population," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(2), pages 146-165, April.
    20. Zhou Yang & Donna B. Gilleskie & Edward C. Norton, 2004. "Prescription Drugs, Medical Care, and Health Outcomes: A Model of Elderly Health Dynamics," NBER Working Papers 10964, National Bureau of Economic Research, Inc.

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