Working Paper: CEPR ID: DP1559
Authors: Regina T. Riphahn; Brent Kreider
Abstract: This study investigates the determinants of applications for US disability benefits between 1986 and 1993 using a semiparametric discrete factor procedure. Approximating a dynamic optimization model, the estimation carefully accounts for a variety of potential biases that weren?t addressed in previous studies. Our results indicate vast differences in the responses of men and women to variations in policy measures. Past labour earnings and fringe benefits as well as benefit eligibility and benefit amounts clearly affect application behaviour.
Keywords: disability; system; retirement behaviour; discrete factor approximation; social security
JEL Codes: H55; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Benefit amounts (H55) | Application behavior of men (C92) |
| Benefit amounts (H55) | Application behavior of women (J16) |
| Probability of being accepted (C12) | Applications (C88) |
| Probability of being accepted (C12) | Applications (men) (C01) |
| Probability of being accepted (C12) | Applications (women) (J16) |
| Opportunity cost of applying (D29) | Probability of applying for disability benefits (H55) |