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Disability Benefit Growth and Disability Reform in the U.S.: Lessons from Other OECD Nations

Author

Listed:
  • Mary C. Daly
  • Richard V. Burkhauser

    (Faculty of Business and Economics
    Syracuse University
    Cornell University
    Department of Policy Analysis and Management)

  • Roger Wilkins
  • Duncan McVicar

    (Northern Ireland Economic Research Centre
    Queen's University Belfast
    Management School
    Melbourne Institute of Applied Economic and Social Research)

Abstract

Unsustainable growth in program costs and beneficiaries, together with a growing recognition that even people with severe impairments can work, led to fundamental disability policy reforms in the Netherlands, Sweden, and Great Britain. In Australia, rapid growth in disability recipiency led to more modest reforms. Here we describe the factors driving unsustainable DI program growth in the U.S., show their similarity to the factors that led to unsustainable growth in these other four OECD countries, and discuss the reforms each country implemented to regain control over their cash transfer disability program. Although each country took a unique path to making and implementing fundamental reforms, shared lessons emerge from their experiences.

Suggested Citation

  • Mary C. Daly & Richard V. Burkhauser & Roger Wilkins & Duncan McVicar, 2013. "Disability Benefit Growth and Disability Reform in the U.S.: Lessons from Other OECD Nations," Working Paper Series 2013-40, Federal Reserve Bank of San Francisco, revised 13 Dec 2013.
  • Handle: RePEc:fip:fedfwp:2013-40
    DOI: 10.24148/wp2013-40
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    References listed on IDEAS

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    1. Duncan McVicar, 2008. "Why Have Uk Disability Benefit Rolls Grown So Much?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 114-139, February.
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    Cited by:

    1. Gina Livermore & David Wittenburg & David Neumark, 2014. "Finding alternatives to disability benefit receipt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-9, December.
    2. Silvia Garcia Mandico & Pilar (P.) Garcia-Gomez & Anne (A.C.) Gielen & Owen (O.A.) O'Donnell, 2018. "Earnings responses to disability benefit cuts," Tinbergen Institute Discussion Papers 18-023/V, Tinbergen Institute.
    3. David C. Stapleton & Yonatan Ben-Shalom & David R. Mann, 2015. "The Employment/Eligibility Service System: A New Gateway for Employment Supports and Social Security Disability Benefits," Mathematica Policy Research Reports d8835946ad2743028b4b7acfc, Mathematica Policy Research.
    4. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall Castelló, 2019. "Great Recession and disability insurance in Spain," Empirical Economics, Springer, vol. 56(5), pages 1623-1645, May.
    5. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall-Castello, 2016. "Great Recession and Disability in Spain," Working Papers 896, Barcelona Graduate School of Economics.
    6. De Brouwer, Octave & Leduc, Elisabeth & Tojerow, Ilan, 2019. "The Unexpected Consequences of Job Search Monitoring: Disability Instead of Employment?," IZA Discussion Papers 12304, Institute of Labor Economics (IZA).
    7. Wolter H.J. Hassink & Pierre Koning & Wim Zwinkels, 2015. "Employers Opting Out of Public Disability Insurance: Selection or Incentive Effects?," Tinbergen Institute Discussion Papers 15-081/V, Tinbergen Institute.
    8. Richard V. Burkhauser & Mary C. Daly & Nicolas R. Ziebarth, 2016. "Protecting working-age people with disabilities: experiences of four industrialized nations
      [Absicherung von Personen mit Erwerbsminderung: Erfahrungen aus vier Industrieländern]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 367-386, December.
    9. Barbara Broadway & Duncan McVicar, 2015. "Reducing the Generosity and Increasing the Conditionality of Disability Benefits: Turning the Supertanker or Squeezing the Balloon?," Melbourne Institute Working Paper Series wp2015n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. Thomas Leoni, 2015. "Wirkmodell Krankenstand," WIFO Studies, WIFO, number 58579, February.
    11. Ben Baumberg Geiger & René Böheim & Thomas Leoni, 2018. "The growing American health penalty: International trends in the employment of older workers with poor health," Department of Economics Working Papers wuwp271, Vienna University of Economics and Business, Department of Economics.
    12. René Böheim & Thomas Leoni, 2016. "Disability policies: Reform strategies in a comparative perspective," NBER Working Papers 22206, National Bureau of Economic Research, Inc.
    13. Rainer Eppel & Thomas Leoni & Helmut Mahringer, 2016. "Österreich 2025 – Gesundheit und Beschäftigungsfähigkeit. Status quo und Reformperspektiven," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(11), pages 785-798, November.
    14. Rainer Eppel & Thomas Leoni & Helmut Mahringer, 2016. "Österreich 2025 – Gesundheit und Beschäftigungsfähigkeit. Status quo, internationale Erfahrungen und Reformperspektiven," WIFO Studies, WIFO, number 58794, February.
    15. Thomas Leoni & Johanna Schwinger, 2017. "Fehlzeitenreport 2017. Krankheits- und unfallbedingte Fehlzeiten in Österreich – Die alter(n)sgerechte Arbeitswelt," WIFO Studies, WIFO, number 60730, February.
    16. Hagen, Tobias, 2016. "Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland," Annual Conference 2016 (Augsburg): Demographic Change 145736, Verein für Socialpolitik / German Economic Association.
    17. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series: Business and Law 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    18. Jones, Melanie K. & McVicar, Duncan, 2017. "The Dynamics of Disability and Benefit Receipt in Britain," IZA Discussion Papers 11186, Institute of Labor Economics (IZA).

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    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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