The Effects of Disability Insurance: Evidence From Social Security's Disabled-Widow Program
This study measures the effect of disability insurance on labor supply and health insurance coverage. The effect is identified by a policy in 1990 that increased the generosity of Social Security’s disabled-widow program. Using data from the Current Population Survey, the results suggest that, in this context, disability benefits led to a one-to-one decline in labor force participation, employment, and private insurance coverage. The results imply that the demand for disability benefits may not reflect a latent demand for public health insurance. Key Words: disability insurance, health insurance, labor force participation, Social Security, widows JEL No. H55, J20
|Date of creation:||Oct 2012|
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06-05, Center for Economic Studies, U.S. Census Bureau.
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2000-01, Brown University, Department of Economics.
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American Economic Association, vol. 20(3), pages 71-96, Summer.
- David Autor & Mark Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," NBER Working Papers 12436, National Bureau of Economic Research, Inc.
- Perry Singleton, 2009. "The Effect of Disability Insurance on Health Investment: Evidence from the Veterans Benefits Administration’s Disability Compensation Program," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
- Till von Wachter & Jae Song & Joyce Manchester, 2011. "Trends in Employment and Earnings of Allowed and Rejected Applicants to the Social Security Disability Insurance Program," American Economic Review, American Economic Association, vol. 101(7), pages 3308-29, December.
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