IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Macroeconomic Influences on Social Security Disability Insurance Application Rates

Listed author(s):
  • Dana A. Kerr
  • Bert J. Smoluk
Registered author(s):

    It is generally accepted that Social Security Disability Insurance (DI) Program application rates are influenced by the macro economy. DI program data and previous research indicate that a disproportionate number of beneficiaries (past applicants) are less-educated, with low-skill employment histories. These applicants, while they worked, were likely to intertemporally shift their durables consumption expenditures in response to tight budget constraints over the business cycle. Many endured a decline in their wages relative to the average U.S. worker. A strategy for linking DI application rates to the economy, therefore, is one that focuses on durables consumption shifts and wage inequality. Consistent with our expectations, we find that aggregate DI application rates are inversely related to various durables consumption-to wealth ratios and measures of wage inequality felt by less-educated/low-skilled workers. An interesting finding of this paper is that the national unemployment rate is not always a reliable predictor of DI application rates.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Western Risk and Insurance Association in its journal Journal of Insurance Issues.

    Volume (Year): 34 (2011)
    Issue (Month): 2 ()
    Pages: 112-150

    in new window

    Handle: RePEc:wri:journl:v:34:y:2011:i:2:p:112-150
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:34:y:2011:i:2:p:112-150. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.