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Disability Insurance in the Great Recession: Ease of Access, Program Enrollment, and Local Hysteresis

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  • Melissa S. Kearney
  • Brendan M. Price
  • Riley Wilson

Abstract

We examine the interaction between Social Security Disability Insurance (SSDI) access and economic shocks during the Great Recession by exploiting exogenous variation in SSDI appeals processing time—a measure of hassle or access—between neighboring zip codes assigned to different hearing offices. During the Great Recession, longer processing times led to lower SSDI enrollment in places that experienced more severe labor market downturns. In the full sample, processing time has no clear effect on the pace of employment recovery. However, among severely shocked places with high baseline SSDI enrollment, those with longer processing times saw faster recovery in employment rates.

Suggested Citation

  • Melissa S. Kearney & Brendan M. Price & Riley Wilson, 2021. "Disability Insurance in the Great Recession: Ease of Access, Program Enrollment, and Local Hysteresis," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 486-490, May.
    • Handle: RePEc:aea:apandp:v:111:y:2021:p:486-90
    DOI: 10.1257/pandp.20211092
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    Cited by:

    1. Shumway, Clayson & Wilson, Riley, 2022. "Workplace disruptions, judge caseloads, and judge decisions: Evidence from SSA judicial corps retirements," Journal of Public Economics, Elsevier, vol. 205(C).
    2. Krekó, Judit & Prinz, Dániel & Weber, Andrea, 2024. "Take-up and labor supply responses to disability insurance earnings limits," Labour Economics, Elsevier, vol. 89(C).
    3. Colleen Carey & Nolan H. Miller & David Molitor, 2022. "Why Does Disability Increase During Recessions? Evidence from Medicare," NBER Working Papers 29988, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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