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Social Security Disability Insurance: Applications, Awards, and Lifetime Income Flows

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  • Kreider, Brent

Abstract

This paper provides new evidence about the impact of Social Security Disability Insurance on male labor force participation decisions based on estimates from a structural model of applications, awards, and state-contingent lifetime income flows. The lifetime framework makes it possible to consider long-term opportunity costs associated with early labor force withdrawal and the disincentive to applications resulting from the statutory waiting period before benefits may be received. Estimation techniques account for the self-selected nature of the pool of applicants when predicting the individual-specific probability of acceptance and the opportunity costs of applying.

Suggested Citation

  • Kreider, Brent, 1999. "Social Security Disability Insurance: Applications, Awards, and Lifetime Income Flows," Staff General Research Papers Archive 5188, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5188
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    File URL: http://www.jstor.org/stable/10.1086/209939?seq=1
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    Cited by:

    1. John Bound & Julie Berry Cullen & Austin Nichols & Lucie Schmidt, 2002. "The Welfare Implications of Increasing DI Benefit Generosity," Working Papers wp024, University of Michigan, Michigan Retirement Research Center.
    2. Mullen, Kathleen J. & Staubli, Stefan, 2016. "Disability benefit generosity and labor force withdrawal," Journal of Public Economics, Elsevier, vol. 143(C), pages 49-63.
    3. Burkhauser, Richard V. & Butler, J. S. & Gumus, Gulcin, 2003. "Dynamic Modeling of the SSDI Application Timing Decision: The Importance of Policy Variables," IZA Discussion Papers 942, Institute of Labor Economics (IZA).
    4. Naoko Akashi-Ronquest & Paul Carrillo & Bruce Dembling & Steven Stern, 2011. "Measuring the biases in self-reported disability status: evidence from aggregate data," Applied Economics Letters, Taylor & Francis Journals, vol. 18(11), pages 1053-1060.
    5. Olivia S. Mitchell & John W.R. Phillips, 2002. "Applications, Denials, and Appeals for Social Security Disability Insurance," Working Papers wp032, University of Michigan, Michigan Retirement Research Center.
    6. Nicholas, Lauren Hersch & Done, Nicolae & Baum, Micah, 2020. "Lifetime job demands and later life disability," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    7. Stephan Lindner, 2016. "How Do Unemployment Insurance Benefits Affect the Decision to Apply for Social Security Disability Insurance?," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 62-94.
    8. Burkhauser, Richard V. & Butler, J. S. & Gumus, Gulcin, 2003. "Option Value and Dynamic Programming Model Estimates of Social Security Disability Insurance Application Timing," IZA Discussion Papers 941, Institute of Labor Economics (IZA).
    9. David Card & Brian P. McCall, 2009. "When to Start a Fight and When to Fight Back: Liability Disputes in the Workers' Compensation System," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 149-178, April.
    10. Bound, John & Cullen, Julie Berry & Nichols, Austin & Schmidt, Lucie, 2004. "The welfare implications of increasing disability insurance benefit generosity," Journal of Public Economics, Elsevier, vol. 88(12), pages 2487-2514, December.
    11. Michele Campolieti & James Goldenberg, 2007. "Disability Insurance Denial Rates and the Labor Force Participation of Older Men and Women in Canada," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(1), pages 59-75, March.
    12. Giovanni Gallipoli & Laura Turner, 2009. "Household Responses to Individual Shocks: Disability and Labor Supply," Working Paper series 04_09, Rimini Centre for Economic Analysis.
    13. Mark Duggan & Perry Singleton & Jae Song, 2005. "Aching to Retire? The Rise in the Full Retirement Age and its Impact on the Disability Rolls," NBER Working Papers 11811, National Bureau of Economic Research, Inc.
    14. Michele Campolieti, 2002. "Moral Hazard and Disability Insurance: On the Incidence of Hard-to-Diagnose Medical Conditions in the Canada/Quebec Pension Plan Disability Program," Canadian Public Policy, University of Toronto Press, vol. 28(3), pages 419-441, September.
    15. Lahiri, Kajal & Song, Jae & Wixon, Bernard, 2008. "A model of Social Security Disability Insurance using matched SIPP/Administrative data," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 4-20, July.
    16. Larsen, Andrew Mikael, 2004. "Effects of a minimum wage increase on the employment of disabled persons," ISU General Staff Papers 2004010108000017651, Iowa State University, Department of Economics.
    17. Bound, John & Stinebrickner, Todd & Waidmann, Timothy, 2010. "Health, economic resources and the work decisions of older men," Journal of Econometrics, Elsevier, vol. 156(1), pages 106-129, May.
    18. Lindsay Jacobs, 2016. "Occupational Choice, Retirement, and the Effects of Disability Insurance," Finance and Economics Discussion Series 2016-051, Board of Governors of the Federal Reserve System (U.S.).
    19. Laura Turner & Giovanni Gallipoli, 2011. "Social Security, Endogenous Retirement, and Intrahousehold Cooperation," 2011 Meeting Papers 935, Society for Economic Dynamics.
    20. Kajal Lahiri & Jianting Hu, 2021. "Productive efficiency in processing social security disability claims: a look back at the 1989–95 surge," Empirical Economics, Springer, vol. 60(1), pages 419-457, January.
    21. Duggan, Mark & Singleton, Perry & Song, Jae, 2007. "Aching to retire? The rise in the full retirement age and its impact on the social security disability rolls," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1327-1350, August.
    22. Hakola, Tuulia, 2002. "Alternative Approaches to Model Withdrawals from the Labour Market – A Literature Review," Working Paper Series 2003:4, Uppsala University, Department of Economics.
    23. Jacobs, Lindsay, 2023. "Occupations, retirement, and the value of disability insurance," Journal of Public Economics, Elsevier, vol. 225(C).
    24. Campolieti, Michele, 2002. "Disability and the labor force participation of older men in Canada," Labour Economics, Elsevier, vol. 9(3), pages 405-432, July.

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