The Effect of Disability Insurance on Health Investment: Evidence from the Veterans Benefits Administration’s Disability Compensation Program
I examine whether individuals respond to monetary incentives to detect latent medical conditions. The effect is identified by a policy that deemed diabetes associated with herbicide exposure a compensable disability under the Veterans Benefits Administration’s Disability Compensation program. Since a diagnosis is a requisite for benefit eligibility, and nearly one-third of diabetics remain undiagnosed, the advent of disability insurance may have encouraged the detection of diabetes among the previously undiagnosed population. Evidence from the National Health Interview Survey suggests that the policy increased the prevalence of diagnosed diabetes by 3.1 percentage points among veterans.
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- Susan Chen & Wilbert van der Klaauw, 2006.
"The Work Disincentive Effects of the Disability Insurance Program in the 1990s,"
06-05, Center for Economic Studies, U.S. Census Bureau.
- 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.
- Mark Duggan & Robert Rosenheck & Perry Singleton, 2006. "Federal Policy and the Rise in Disability Enrollment: Evidence for the VA's Disability Compensation Program," NBER Working Papers 12323, National Bureau of Economic Research, Inc.
- Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.
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