Economic analysis of transfer programs targeted on people with disabilities

This chapter reviews the behavioral and redistributive effects of transfer programs targeted at working-age people with disabilities. While we primarily focus on the United States, we also include programs in the Federal Republic of Germany, The Netherlands, and Sweden. We look at how the economic well-being of people with disabilities varies across people and over time. We then present a brief history of Social Security Disability Insurance and Supplemental Security Income programs and review the evidence that attempts to explain their growth. We then review the literature on the labor supply behavior of people with disabilities and how that supply is affected by disability program characteristics. We end with a summary of our findings and a discussion of the major unresolved issues in the disability literature.