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Disability Benefit Growth and Disability Reform in the US: Lessons from Other OECD Nations

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  • Richard V. Burkhauser
  • Mary C. Daly
  • Duncan McVicar
  • Roger Wilkins

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.

Suggested Citation

  • Richard V. Burkhauser & Mary C. Daly & Duncan McVicar & Roger Wilkins, "undated". "Disability Benefit Growth and Disability Reform in the US: Lessons from Other OECD Nations," Mathematica Policy Research Reports 6686cc3d659c42c08c44f3011, Mathematica Policy Research.
  • Handle: RePEc:mpr:mprres:6686cc3d659c42c08c44f3011f7f318c
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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.
    2. Lisa Jönsson & Mårten Palme & Ingemar Svensson, 2012. "Disability Insurance, Population Health, and Employment in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 79-126, National Bureau of Economic Research, Inc.
    3. Dan Black & Kermit Daniel & Seth Sanders, 2002. "The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust," American Economic Review, American Economic Association, vol. 92(1), pages 27-50, March.
    4. Christina Beatty & Stephen Fothergill, 2005. "The diversion from 'unemployment' to 'sickness' across British regions and districts," Regional Studies, Taylor & Francis Journals, vol. 39(7), pages 837-854.
    5. Jan-Maarten van Sonsbeek & Raymond H. J. M. Gradus, 2013. "Estimating the effects of recent disability reforms in the Netherlands," Oxford Economic Papers, Oxford University Press, vol. 65(4), pages 832-855, October.
    6. Mark Duggan & Scott A. Imberman, 2009. "Why Are the Disability Rolls Skyrocketing? The Contribution of Population Characteristics, Economic Conditions, and Program Generosity," NBER Chapters, in: Health at Older Ages: The Causes and Consequences of Declining Disability among the Elderly, pages 337-379, National Bureau of Economic Research, Inc.
    7. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2013. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," American Economic Review, American Economic Association, vol. 103(5), pages 1797-1829, August.
    8. Marcus E. Rebick, 1994. "Social Security and Older Workers' Labor Market Responsiveness: The United States, Japan, and Sweden," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 189-222, National Bureau of Economic Research, Inc.
    9. Richard V. Burkhauser & Mary C. Daly & Brian T. Lucking, 2013. "Is Australia One Recession Away from a Disability Blowout? Lessons from Other Organisation for Economic Co-operation and Development Countries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 357-368, September.
    10. Duncan McVicar & Roger Wilkins, 2013. "Explaining the Growth in the Number of Recipients of the Disability Support Pension in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 345-356, September.
    11. Daniela Andrén, 2003. "Sickness-related Absenteeism and Economic Incentives in Sweden: A History of Reforms," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(3), pages 54-60, 02.
    12. David H. Autor & Mark G. Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 71-96, Summer.
    13. Arthur van Soest & Tatiana Andreyeva & Arie Kapteyn & James P. Smith, 2011. "Self-Reported Disability and Reference Groups," NBER Chapters, in: Investigations in the Economics of Aging, pages 237-264, National Bureau of Economic Research, Inc.
    14. Michael Anyadike-Danes & Duncan McVicar, 2008. "Has the Boom in Incapacity Benefit Claimant Numbers Passed Its Peak?," Fiscal Studies, Institute for Fiscal Studies, vol. 29(4), pages 415-434, December.
    15. 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 3308-3329, December.
    16. Richard V. Burkhauser & Mary C. Daly, 2012. "Social Security Disability Insurance: Time For Fundamental Change," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(2), pages 454-461, March.
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    Cited by:

    1. Kelly Chen & Lars Osberg & Shelley Phipps, 2019. "Unequal opportunities and public policy: The impact of parental disability benefits on child postsecondary attendance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1401-1432, November.
    2. 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.
    3. 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.
    4. Garrett Anstreicher, 2021. "Does increasing health care access reduce disability insurance caseloads? Evidence from the rural United States," Health Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 786-802, April.
    5. 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).
    6. Morris, Zachary A. & Zaidi, Asghar, 2020. "Estimating the extra costs of disability in European countries: Implications for poverty measurement and disability-related decommodification," LSE Research Online Documents on Economics 103778, London School of Economics and Political Science, LSE Library.
    7. 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.
    8. 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.
    9. René Böheim & Thomas Leoni, 2016. "Disability policies: Reform strategies in a comparative perspective," NBER Working Papers 22206, National Bureau of Economic Research, Inc.
    10. Rainer Eppel & Thomas Leoni & Helmut Mahringer, 2016. "Österreich 2025 – Gesundheit und Beschäftigungsfähigkeit. Status quo, internationale Erfahrungen und Reformperspektiven," WIFO Studies, WIFO, number 58794, February.
    11. Hassink, Wolter & Koning, Pierre & Zwinkels, Wim, 2015. "Employers Opting Out of Public Disability Insurance: Selection or Incentive Effects?," IZA Discussion Papers 9181, Institute of Labor Economics (IZA).
    12. Thomas Leoni & Johanna Schwinger, 2017. "Fehlzeitenreport 2017. Krankheits- und unfallbedingte Fehlzeiten in Österreich Die alter(n)sgerechte Arbeitswelt," WIFO Studies, WIFO, number 60730, June.
    13. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    14. 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.
    15. Hassink Wolter H.J. & Koning Pierre & Zwinkels Wim, 2018. "Do Firms with Low Disability Risks Opt Out from Public to Private Insurance?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-11, January.
    16. 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.
    17. David C. Stapleton & Yonatan Ben-Shalom & David R. Mann, "undated". "The Employment/Eligibility Service System: A New Gateway for Employment Supports and Social Security Disability Benefits," Mathematica Policy Research Reports d8835946ad2743028b4b7acfc, Mathematica Policy Research.
    18. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall-Castello, 2016. "Great Recession and Disability in Spain," Working Papers 896, Barcelona Graduate School of Economics.
    19. Garcia-Mandicó, Sílvia & García-Gómez, Pilar & Gielen, Anne C. & O’Donnell, Owen, 2020. "Earnings responses to disability insurance stringency," Labour Economics, Elsevier, vol. 66(C).
    20. Ruth Hancock & Marcello Morciano & Stephen Pudney, 2019. "Public Support for Older Disabled People: Evidence from the English Longitudinal Study of Ageing on Receipt of Disability Benefits and Social Care Subsidy," Fiscal Studies, John Wiley & Sons, vol. 40(1), pages 19-43, March.
    21. Thomas Leoni, 2015. "Wirkmodell Krankenstand," WIFO Studies, WIFO, number 58579, June.
    22. Jones, Melanie K. & McVicar, Duncan, 2020. "Estimating the impact of disability onset on employment," Social Science & Medicine, Elsevier, vol. 255(C).
    23. 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.
    24. Hagen, Tobias, 2016. "Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland," VfS Annual Conference 2016 (Augsburg): Demographic Change 145736, Verein für Socialpolitik / German Economic Association.
    25. 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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    More about this item

    Keywords

    Disability; Cross-national policy; Social Security Disability Insurance;
    All these keywords.

    JEL classification:

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

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    This paper has been announced in the following NEP Reports:

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