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An empirical analysis of the social security disability application, appeal, and award process

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  • Benitez-Silva, Hugo
  • Buchinsky, Moshe
  • Chan, Hiu Man
  • Rust, John
  • Sheidvasser, Sofia

Abstract

We provide an empirical analysis of the Social Security disability application, award, and appeal process using the Health and Retirement Survey. We show that the appeal option increases the award probability from 46\% to 73\%. However, this comes at the cost of significant delays: the duration between application and award is over three times longer for those who are awarded benefits after one or more stages of appeal. Our results reveal the importance of self-selection in application and appeal decisions. In particular, an individual's self- assessed disability status emerges as one of the most powerful predictors of application, appeal, and award decisions.
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Suggested Citation

  • Benitez-Silva, Hugo & Buchinsky, Moshe & Chan, Hiu Man & Rust, John & Sheidvasser, Sofia, 1999. "An empirical analysis of the social security disability application, appeal, and award process," Labour Economics, Elsevier, vol. 6(2), pages 147-178, June.
    • Handle: RePEc:eee:labeco:v:6:y:1999:i:2:p:147-178
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    References listed on IDEAS

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    1. Halpern, Janice & Hausman, Jerry A., 1986. "Choice under uncertainty: A model of applications for the social security disability insurance program," Journal of Public Economics, Elsevier, vol. 31(2), pages 131-161, November.
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    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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