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Characteristics and Employment of Applicants for Social Security Disability Insurance over the Business Cycle

Author

Listed:
  • Lindner Stephan

    (Oregon Health & Science University, Center for Health Systems Effectiveness, 3030 SW Moody Ave, Portland, OR97201, USA)

  • Burdick Clark

    (comScore, Inc., Reston, VA20190, USA)

  • Meseguer Javier

    (Social Security Administration, ORDP/ORES, 7 VA, 500 E Street, SW, Washington, DC20254, USA)

Abstract

We investigate the relationship between the unemployment rate and characteristics of applicants for Social Security Disability Insurance using administrative records of the universe of applicants between 1991 and 2008. As the unemployment rate rises, applications shift to those with higher work capacity who are rejected early in the eligibility determination process and have higher pre-application earnings and employment. However, post-application earnings and employment of denied applicants are slightly negatively related to the unemployment rate, suggesting that both compositional changes toward applications with higher work capacity and adverse economic conditions affect their employment and earnings.

Suggested Citation

  • Lindner Stephan & Burdick Clark & Meseguer Javier, 2017. "Characteristics and Employment of Applicants for Social Security Disability Insurance over the Business Cycle," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-17, February.
    • Handle: RePEc:bpj:bejeap:v:17:y:2017:i:1:p:17:n:7
    DOI: 10.1515/bejeap-2016-0095
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    References listed on IDEAS

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    3. David Autor & Nicole Maestas & Kathleen Mullen & Alexander Strand, 2011. "Does Delay Cause Decay? The Effect of Administrative Decision Time on the Labor Force Participation and Earnings of Disability Applicants," Working Papers wp258, University of Michigan, Michigan Retirement Research Center.
    4. Till von Wachter & Jae Song & Joyce Manchester, 2011. "Trends in Employment and Earnings of Allowed and Rejected Applicants to the Social Security Disability Insurance Program," American Economic Review, American Economic Association, vol. 101(7), pages 3308-3329, December.
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    10. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2013. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," American Economic Review, American Economic Association, vol. 103(5), pages 1797-1829, August.
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    Cited by:

    1. Hamish Low & Luigi Pistaferri, 2020. "Disability Insurance: Theoretical Trade‐Offs and Empirical Evidence," Fiscal Studies, John Wiley & Sons, vol. 41(1), pages 129-164, March.
    2. 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.
    3. Michael Anderson & Yonatan Ben-Shalom & David Stapleton & Emily Roessel, "undated". "The Impact of the Great Recession on SSDI Awards: A Birth-Cohort Analysis," Mathematica Policy Research Reports b59814bdab3b477db7e5600d7, Mathematica Policy Research.
    4. Maestas, Nicole & Mullen, Kathleen J. & Strand, Alexander, 2021. "The effect of economic conditions on the disability insurance program: Evidence from the great recession," Journal of Public Economics, Elsevier, vol. 199(C).

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