Return-to-Work Outcomes Among Social Security Disability Insurance Program Beneficiaries

Abstract

We followed a sample of working-age Social Security Disability Insurance (DI) program beneficiaries for 5 years after their first benefit award to learn how certain factors are associated with achievement of four return-to-work milestones: enrollment for employment services provided by a state vocational rehabilitation agency or employment network, start of a trial work period (TWP), completion of TWP, and suspension or termination of benefits because of work. We found that younger beneficiaries are more likely than are older beneficiaries to achieve the milestones and that there exists substantial variation across impairment types. In addition, the probability of achieving the milestones is higher for individuals with more years of education, for Blacks, and for individuals residing in states with low unemployment rates at the time of award. It is lower for beneficiaries with a high DI benefit amount at award, an award decision made at a higher adjudicative level, and/or Supplemental Security Income or Medicare benefits at the time of DI award. We also found large variation in the relationships of both state of residence and award month to these return-to-work outcomes. We attribute these variations to unobserved factors at the state-level, policy changes, and trends in unobserved beneficiary characteristics.

Pathways Taken by New Social Security Disability Insurance and Supplemental Security Income Awardees

“…However, relative to all DI-first awardees, those who are younger than age 45, those with more than a high school education, and those with dependents are particularly overrepresented in DI-first paths where the only additional milestone is enrolling in ES or TWP completion with or without benefit termination. These findings are similar to those in Ben-Shalom and Mamun (2015), who found that DI beneficiaries who are younger and more educated are more likely to achieve work-related milestones. Similarly, relative to all SSI-first awardees, those who are ages 18 to 24 are overrepresented in SSI-first paths where the only milestone is having PCE or enrolling in ES, and those who have more than a high school education are overrepresented in SSI-first paths where receiving ES is the only milestone.…”

“…Previous research has tracked work-related milestones achieved by cohorts of DI and SSI awardees and also explored longitudinal patterns of participation in DI and SSI. Liu and Stapleton (2011) examined the percentage of new DI beneficiaries who followed predefined paths of work-related milestones, whereas Ben-Shalom and Mamun (2015) identified awardee characteristics associated with the completion of a similar set of milestones. Ben-Shalom and Stapleton (2015) conducted a study similar to that of Liu and Stapleton (2011), but examined new SSI-beneficiaries and tracked a somewhat different set of milestones, including entry into DI.…”

Predictors of Earnings Enabling Likely Roll Departure for SSDI Beneficiaries With Visual Impairments in Vocational Rehabilitation

“…Although some beneficiaries return to work (about 7%; Kennedy & Olney, 2006), fewer (almost 4%) terminate benefits due to work, with as many as 27% of these being reinstated within 10 years (Stapleton, Liu, Phelps, & Prenovitz, 2010). Research involving factors associated with termination of DI benefits due to work is very limited (e.g., Ben-Shalom & Mamun, 2015; Liu & Stapleton, 2011; Muller, 1992). Positive factors for termination of DI benefits include more education, higher family income, no cognitive impairment, being White (Muller, 1992), being African American (Ben-Shalom & Mamun, 2015), awarded benefits before age 40, and living in states with low unemployment rates at award.…”

“…Research involving factors associated with termination of DI benefits due to work is very limited (e.g., Ben-Shalom & Mamun, 2015; Liu & Stapleton, 2011; Muller, 1992). Positive factors for termination of DI benefits include more education, higher family income, no cognitive impairment, being White (Muller, 1992), being African American (Ben-Shalom & Mamun, 2015), awarded benefits before age 40, and living in states with low unemployment rates at award. Negative factors were receiving a high DI benefit amount, Supplemental Security Income (SSI) benefits, or Medicare.…”

“…Thus, we use earnings exceeding SGA criterion to declare an individual a “prime candidate” to achieve suspension and possible termination of benefits, thereby leading to DI-program roll departure. In addition, this criterion meets the earnings level to achieve the critical suspension or termination for work milestone delineated by Ben-Shalom and Mamun (2015).…”