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The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust

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Author Info
Dan Black
Kermit Daniel
Seth Sanders

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Abstract

We examine the impact of the coal boom of the 1970's and the coal bust of the 1980's on disability program participation. These shocks provide clear evidence that as the value of labor-market participation increases, disability program participation falls. For the Disability Insurance program, the elasticity of payments with respect to local earnings is between –0.3 and –0.4 and for Supplemental Security Income the elasticity is between –0.4 and –0.7. Consistent with a model where qualifying for disability programs is costly, the relationship between economic conditions and program participation is much stronger for permanent than for transitory economic shocks. (JEL, J0, H0)

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File URL: http://hdl.handle.net/10.1257/000282802760015595
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 92 (2002)
Issue (Month): 1 (March)
Pages: 27-50
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Handle: RePEc:aea:aecrev:v:92:y:2002:i:1:p:27-50

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  1. McKinley L. Blackburn & David E. Bloom & Richard B. Freeman, 1989. "The Declining Economic Position of Less-Skilled American Males," NBER Working Papers 3186, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, American Economic Association, vol. 80(3), pages 313-36, June.
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  3. repec:fth:coluec:452 is not listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Skedinger, Per & Widerstedt, Barbro, 2003. "Recruitment to Sheltered Employment: Evidence from Samhall, a Swedish State-Owned Company," Working Paper Series 597, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  2. Mari Rege, Kjetil Telle and Mark Votruba, 2005. "The Effect of Plant Downsizing on Disability Pension Utilization," Discussion Papers 435, Research Department of Statistics Norway. [Downloadable!]
    Other versions:
  3. Joshua D. Angrist & Stacey H. Chen & Brigham R. Frandsen, 2009. "Did Vietnam Veterans Get Sicker in the 1990s? The Complicated Effects of Military Service on Self-Reported Health," NBER Working Papers 14781, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Daniel Sullivan & Till von Wachter, 2007. "Mortality, Mass-Layoffs, and Career Outcomes: An Analysis using Administrative Data," NBER Working Papers 13626, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Lixin Cai & Ha Vu & Roger Wilkins, 2006. "Disability Support Pension Recipients: Who Gets Off (and Stays Off) Payments?," Melbourne Institute Working Paper Series wp2006n18, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  6. David H. Autor & Mark G. Duggan, 2002. "The Rise in Disability Recipiency and the Decline in Unemployment," Working Papers, Center for Retirement Research at Boston College 2002-07, Center for Retirement Research. [Downloadable!]
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  7. Duncan McVicar, 2006. "Why do disability benefit rolls vary between regions? A review of the evidence from the USA and the UK," Regional Studies, Taylor and Francis Journals, vol. 40(5), pages 519-533, July. [Downloadable!] (restricted)
  8. Perry Singleton, 2008. "The Effect of Disability Insurance on Health Investment: Evidence from the VA Disability Compensation Program," Center for Policy Research Working Papers 105, Center for Policy Research, Maxwell School, Syracuse University.
  9. Pierre Koning & Daniël van Vuuren, 2006. "Disability insurance and unemployment insurance as substitute pathways," CPB Discussion Papers 70, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  10. Michele Campolieti & Harry A. Krashinsky, 2003. "Substitution Between Disability Support Programs in Canada," Canadian Public Policy, University of Toronto Press, vol. 29(4), pages 417-429, December. [Downloadable!] (restricted)
  11. Mark Duggan & Robert Rosenheck & Perry Singleton, 2006. "Federal Policy and the Rise in Disability Enrollment: Evidence for the VA's Disability Compensation Program," NBER Working Papers 12323, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Christina Beatty & Stephen Fothergill, 2005. "The diversion from 'unemployment’ to 'sickness’ across British regions and districts," Regional Studies, Taylor and Francis Journals, vol. 39(7), pages 837-854, October. [Downloadable!] (restricted)
  13. Mary C. Daly & Richard V. Burkhauser, 2000. "The Supplemental Security Income program," Working Papers in Applied Economic Theory 2001-06, Federal Reserve Bank of San Francisco. [Downloadable!]
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  14. Darby, Julia & Mélitz, Jacques, 2007. "Labour Market Adjustment, Social Spending and the Automatic Stabilizers in the OECD," CEPR Discussion Papers 6230, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  15. Annemiek Vuren & Daniel Vuuren, 2007. "Financial Incentives in Disability Insurance in the Netherlands," De Economist, Springer, vol. 155(1), pages 73-98, March. [Downloadable!] (restricted)
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  16. Mark Duggan & Perry Singleton & Jae Song, 2005. "Aching to Retire? The Rise in the Full Retirement Age and its Impact on the Disability Rolls," NBER Working Papers 11811, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Mari Rege, Kjetil Telle and Mark Votruba, 2007. "Social Interaction Effects in Disability Pension Participation. Evidence from Plant Downsizing," Discussion Papers 496, Research Department of Statistics Norway. [Downloadable!]
  18. Shawn Kantor & Alexander Whalley, 2009. "Do Universities Generate Agglomeration Spillovers? Evidence from Endowment Value Shocks," NBER Working Papers 15299, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  20. David Autor & Mark Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," NBER Working Papers 12436, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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