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Towards an Economics of Disability: The Magnitude and Structure of Transfer and Medical Costs

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  • Monroe Berkowitz
  • William G. Johnson

Abstract

This paper attempts to provide a conceptual and statistical basis for future research into the problem of disability and its economic costs. The concept of a "workmen's disability income system" is introduced as a means of defining the boundaries of the problem. The rationale for the existence of many different transfer payment programs is analyzed. Aggregate transfer payments for disability to those of labor force age amounted to approximately $14 billion in 1967; medical costs totalled more than $20 billion, and survivor payments were crudely estimated to be nearly $3 billion. These estimates are used to derive a first approximation of economic losses of nearly $43 billion in 1967.

Suggested Citation

  • Monroe Berkowitz & William G. Johnson, 1970. "Towards an Economics of Disability: The Magnitude and Structure of Transfer and Medical Costs," Journal of Human Resources, University of Wisconsin Press, vol. 5(3).
    • Handle: RePEc:uwp:jhriss:v:5:y:1970:i:3:p:
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