The Rise in Disability Recipiency and the Decline in Unemployment

Autor, David H.; Duggan, Mark

doi:10.2139/ssrn.271732

Cited by 40 publications

(47 citation statements)

References 27 publications

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“…This finding is consistent with the evidence that the incentives to seek DI benefits are higher with more generous income replacement rates (see, e.g., Autor and Duggan, 2003). In particular, because the DI benefit formula is concave in past earnings and given that maximum DI benefits are truncated at a cap of roughly 2500 euros per month, high-wage workers replace a lower share of income.…”

Section: Resultssupporting

confidence: 91%

“…The drop in the number of transitions from unemployment to disability is persistent over time and larger in magnitude than the estimated decline for employment. This finding is consistent with Autor and Duggan (2003) who show that the response to changes in DI eligibility criteria is more elastic for the unemployed because they face low opportunity costs of exiting the labor force to seek benefits than the employed.…”

Section: Resultssupporting

confidence: 89%

“…There is evidence that the demand for DI benefits depends crucially on labor-market conditions (Autor and Duggan, 2003). An examination of workers' records prior to enrollment into disability insurance highlights that a large fraction is unemployed before claiming disability benefits.…”

Section: Resultsmentioning

confidence: 99%

“…Using variations in denial rates across states as a proxy for screening stringency, Gruber and Kubik (1997) find that stricter screening leads to a significant reduction in labor force non-participation among older men. Autor and Duggan (2003) use the liberalization of the disability determination process in 1984 and an unforeseen increase in the earnings replacement rate to explore the impact of the supply of disability benefits on the labor force participation of low-skilled workers. They estimate that the sum of these forces doubles the propensity of high school dropouts to leave the labor force.…”

Section: Introductionmentioning

confidence: 99%

“…3See Autor and Duggan (2003) for the success rate of DI applications relative to the business cycle in the U.S.…”

mentioning

confidence: 99%

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The impact of stricter criteria for disability insurance on labor force participation

Staubli

2011

Journal of Public Economics

134

122

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This paper studies the effect of a large-scale policy change in the Austrian disability insurance program, which tightened eligibility criteria for men above a certain age. Using administrative data on the universe of Austrian private-sector employees, the results of difference-in-difference regressions suggest a substantial and statistically significant decline in disability enrollment of 6 to 7.4 percentage points and an increase in employment of 1.6 to 3.4 percentage points. The policy change had important spillover effects into the unemployment and sickness insurance program. Specifically, the share of individuals receiving unemployment benefits increased by 3.5 to 3.9 percentage points, and the share receiving sickness insurance benefits, by roughly 0.7 percentage points.

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Section: Resultssupporting

confidence: 91%

Section: Resultssupporting

confidence: 89%

Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…3See Autor and Duggan (2003) for the success rate of DI applications relative to the business cycle in the U.S.…”

mentioning

confidence: 99%

See 3 more Smart Citations

The impact of stricter criteria for disability insurance on labor force participation

Staubli

2011

Journal of Public Economics

134

122

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A sequential model of older workers' labor force transitions after a health shock

2006

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In this paper we estimate and validate a three-period sequential model of older workers' labor force transitions following a health/disability shock, using retrospective information from Spanish cross-section data. Central to the analysis are the effects of the various disabilities and their severity. We find that the probability of remaining employed decreases both with age and the severity of the shock. Moreover, we find strong interactions between age and severity for older workers and none for prime-age workers. Suffering any kind of disability reduces the probability of being employed immediately prior to retirement age, and in such cases it is severity which is the strongest indicator. With respect to demographics, we find that female gender, having a retired spouse or being married all reduce the probabilities of both remaining in employment and returning to work following a spell of inactivity; in turn, principal breadwinner status, education and skill levels increase this likelihood.

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Social Security Disability Insurance: Time for Fundamental Change

Burkhauser¹,

Daly²

2012

J Policy Anal Manage

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The Rise in Disability Recipiency and the Decline in Unemployment

Abstract: Between 1984 and 2000, the share of non-elderly adults receiving benefits from the Social Security Disability Insurance (Dl) and Supplemental Security Income (SSI)

Cited by 40 publications

References 27 publications

The impact of stricter criteria for disability insurance on labor force participation

The impact of stricter criteria for disability insurance on labor force participation

A sequential model of older workers' labor force transitions after a health shock

Social Security Disability Insurance: Time for Fundamental Change

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