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Who Goes on Disability When Times Are Tough? The Role of Social Costs of Take-Up Among Immigrants

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  • Furtado, Delia

    (University of Connecticut)

  • Papps, Kerry L.

    (University of Bradford)

  • Theodoropoulos, Nikolaos

    (University of Cyprus)

Abstract

Social Security Disability Insurance (SSDI) take-up tends to increase during recessions. We exploit variation across immigrant groups in the non-pecuniary costs of participating in SSDI to examine the role that costs play in applicant decisions across the business cycle. We show that immigrants from country-of-origin groups that have lower participation costs are more sensitive to economic conditions than immigrants from high cost groups. These results do not seem to be driven by variation across groups in sensitivity to business cycles or eligibility for SSDI. Instead, they appear to be primarily driven by differences in work norms across origin countries.

Suggested Citation

  • Furtado, Delia & Papps, Kerry L. & Theodoropoulos, Nikolaos, 2019. "Who Goes on Disability When Times Are Tough? The Role of Social Costs of Take-Up Among Immigrants," IZA Discussion Papers 12097, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12097
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    More about this item

    Keywords

    unemployment rates; immigrants; disability insurance; ethnic networks;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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