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The Impact of Temporary Assistance Programs on Disability Rolls and Re-Employment

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  • Stephan Lindner
  • Austin Nichols

Abstract

Workers who lose their job draw from temporary assistance programs in order to buffer their income losses. They are also more likely to apply for Disability Insurance (DI) and Supplemental Security Income (SSI). Whether participating in temporary assistance programs influences the application decision for DI and SSI, however, is largely unknown. We address this question using panels from the Survey of Income and Program Participation (SIPP) matched to administrative records on DI and SSI applications. We distinguish between four temporary insurance programs: Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Unemployment Insurance (UI), and Temporary Disability Insurance programs (TDI). For each of these programs, we construct instruments based on state policies in order to address endogeneity concerns. Our results indicate that workers select into temporary assistance and disability programs by income and health status. When controlling for selection bias, we find evidence that increased access to UI benefits reduces applications for DI, while increased access to SNAP benefits increases applications for SSI. These results suggests that (i) applications for DI and SSI are sensitive to participation in temporary assistance programs; (ii) the strength of the net effect depends on the overlap between target populations; and (iii) the direction of the net effect depends on benefit levels or on institutional and population characteristics.

Suggested Citation

  • Stephan Lindner & Austin Nichols, 2012. "The Impact of Temporary Assistance Programs on Disability Rolls and Re-Employment," Working Papers, Center for Retirement Research at Boston College wp2012-2, Center for Retirement Research, revised Jan 2012.
  • Handle: RePEc:crr:crrwps:wp2012-2
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    Cited by:

    1. Jesse Rothstein & Robert G. Valletta, 2017. "Scraping by: Income and Program Participation After the Loss of Extended Unemployment Benefits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(4), pages 880-908, September.
    2. Marianne Bitler & Hilary Hoynes, 2016. "The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 403-444.
    3. Andreas I. Mueller & Jesse Rothstein & Till M. von Wachter, 2016. "Unemployment Insurance and Disability Insurance in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 445-475.
    4. David Stapleton & Robert Burns & Benjamin Doornink & Mary Harris & Robert Anfield & Winthrop Cashdollar & Brian Gifford & Kevin Ufier, 2015. "Targeting Early Intervention to Workers Who Need Help to Stay in the Labor Force," Mathematica Policy Research Reports 496474bae5054b11bfe429d48, Mathematica Policy Research.
    5. Peter R. Mueser & Colleen M. Heflin, 2013. "Aid to Jobless Workers in Florida in the Face of the Great Recession: The Interaction of Unemployment Insurance and the Supplemental Nutritional Assistance Program," Working Papers 1318, Department of Economics, University of Missouri.
    6. Jeehoon Han, 2016. "SNAP Expansions and Participation in Government Safety Net Programs," 2016 Papers pha1139, Job Market Papers.

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