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Reinventing Disability Policy

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  • Levine, David I.

Abstract

The disability system in the United States spends approximately $120 billion a year to keep millions of working-aged people on poverty-level stipends while essentially banning them from working. A reinvented system would focus on moving people from dependence to independence with flexible vocational rehabilitation vouchers, work-oriented assessments, and simple rules that guarantee that nobody would ever be made worse off by working. A problem with creating a system that combines work and partial disability benefits is that it may attract new entrants onto the disability rolls. A key insight of this proposal is that these generous work incentives can be tested on the current six million working-age recipients without inducing entry that raises costs.

Suggested Citation

  • Levine, David I., 1997. "Reinventing Disability Policy," Institute for Research on Labor and Employment, Working Paper Series qt7cq715wp, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt7cq715wp
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    References listed on IDEAS

    as
    1. Bound, John, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," American Economic Review, American Economic Association, vol. 79(3), pages 482-503, June.
    2. Jonathan S. Leonard, 1985. "Labor Supply Incentives and Disincentives for the Disabled," NBER Working Papers 1744, National Bureau of Economic Research, Inc.
    3. Carolyn L. Weaver, 1991. "Disability and Work: Incentives, Rights, and Opportunities," Books, American Enterprise Institute, number 917962, September.
    4. H. Hoynes & R. Moffitt, "undated". "The effectiveness of financial work incentives in DI and SSI: Lessons from other transfer programs," Institute for Research on Poverty Discussion Papers 1073-95, University of Wisconsin Institute for Research on Poverty.
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    Keywords

    Disability; Vocational Rehabilitation;

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