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An Empirical Analysis of the Social Security Disability Application, Appeal, and Award Process

Author

Listed:
  • Hugo Benitez-Silva

    (Yale University)

  • Moshe Buchinsky

    (Brown University)

  • Hiu-Man Chan

    (Yale University)

  • John Rust

    (Yale University)

  • Sofia Sheivasser

    (Yale University)

Abstract

We provide an empirical analysis of the Social Security disability application, award, and appeal process using the Health and Retirement Survey. We show that the appeal option increases the award probability from 46\% to 73\%. However, this comes at the cost of significant delays: the duration between application and award is over three times longer for those who are awarded benefits after one or more stages of appeal. Our results reveal the importance of self-selection in application and appeal decisions. In particular, an individual's self- assessed disability status emerges as one of the most powerful predictors of application, appeal, and award decisions.

Suggested Citation

  • Hugo Benitez-Silva & Moshe Buchinsky & Hiu-Man Chan & John Rust & Sofia Sheivasser, 1997. "An Empirical Analysis of the Social Security Disability Application, Appeal, and Award Process," Public Economics 9712001, University Library of Munich, Germany, revised 12 Oct 1998.
  • Handle: RePEc:wpa:wuwppe:9712001
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    References listed on IDEAS

    as
    1. Halpern, Janice & Hausman, Jerry A., 1986. "Choice under uncertainty: A model of applications for the social security disability insurance program," Journal of Public Economics, Elsevier, vol. 31(2), pages 131-161, November.
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    4. John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
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    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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