Working Paper: NBER ID: w2816
Authors: John Bound
Abstract: 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.
Keywords: Disability Insurance; Labor Force Participation; Economic Studies
JEL Codes: I13; J14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| availability of generous DI benefits (J65) | decision of older men to leave the labor force (J26) |
| health status of applicants (I12) | labor force participation rates (J49) |
| rejected DI applicants (Y40) | labor force performance (J21) |
| DI benefits (H53) | labor force participation of older men (J26) |
| health and economic conditions (I14) | decision to apply for DI (G52) |
| many beneficiaries may have been out of work regardless of DI's existence (J65) | decline in labor force participation among older men (J26) |