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Can Benefits and Work Incentives Counseling be a Path to Future Economic Self-Sufficiency for Individuals with Disabilities?

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  • Zafar E. Nazarov

    (Indiana University – Purdue University Fort Wayne)

Abstract

In this paper, I estimate the relationship between benefit counseling and work incentive services and various labor market outcomes in the case of Supplemental Security Income /Social Security Disability Insurance beneficiaries who from 2003 to 2009 participated in the Vocational Rehabilitation programs in New York State. Using the propensity score matching approach, I find that counseling services can increase the probability of successful case closure by 5.2 percentage points. At the same time, these services can increase the earnings and working hours of beneficiaries by $42 and 3.3 h per week, respectively. Moreover, there is a $0.59 per hour increase in the wage rate for service recipients. From these results I conclude that providing benefit counseling and work incentive services helps beneficiaries who have strong employment goals achieve financial independence.

Suggested Citation

  • Zafar E. Nazarov, 2016. "Can Benefits and Work Incentives Counseling be a Path to Future Economic Self-Sufficiency for Individuals with Disabilities?," Journal of Labor Research, Springer, vol. 37(2), pages 211-234, June.
    • Handle: RePEc:spr:jlabre:v:37:y:2016:i:2:d:10.1007_s12122-016-9223-6
    DOI: 10.1007/s12122-016-9223-6
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    More about this item

    Keywords

    Disability; Employment; Working hours; Weekly earnings; Propensity score matching;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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