The Health and Earnings of Rejected Disability Insurance Applicants
Applicants for Social Security Disability Benefits who fail to pass the medical screening form a natural 'control' group for beneficiaries. Data drawn from the 1972 and 1978 surveys of the disabled done for the Social Security Administration show that fewer than 50% of rejected male applicants work. Typical earnings of those that do are less than 50% of median earnings for other men their age. These data cast doubt on recent econometric work which suggests that the disincentive effects of DI have been substantial.
|Date of creation:||Jan 1989|
|Date of revision:|
|Publication status:||published as The American Economic Review, Vol. 79, No. 3, pp. 482-503, (June 1989).|
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- Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
- Michael Grossman, 1976.
"The Correlation between Health and Schooling,"
in: Household Production and Consumption, pages 147-224
National Bureau of Economic Research, Inc.
- Jonathan S. Leonard, 1979. "The Social Security Disability Program and Labor Force Participation," NBER Working Papers 0392, National Bureau of Economic Research, Inc.
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