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Reinventing Disability Policy

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  • Levine, David I.

Abstract

The disability system in the United States spends approximately $120 billion a year to keep millions of working-aged people on poverty-level stipends while essentially banning them from working. A reinvented system would focus on moving people from dependence to independence with flexible vocational rehabilitation vouchers, work-oriented assessments, and simple rules that guarantee that nobody would ever be made worse off by working. A problem with creating a system that combines work and partial disability benefits is that it may attract new entrants onto the disability rolls. A key insight of this proposal is that these generous work incentives can be tested on the current six million working-age recipients without inducing entry that raises costs.

Suggested Citation

  • Levine, David I., 1997. "Reinventing Disability Policy," Institute for Research on Labor and Employment, Working Paper Series qt7cq715wp, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt7cq715wp
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    References listed on IDEAS

    as
    1. Bound, John, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," American Economic Review, American Economic Association, vol. 79(3), pages 482-503, June.
    2. Carolyn L. Weaver, 1991. "Disability and Work: Incentives, Rights, and Opportunities," Books, American Enterprise Institute, number 917962, September.
    3. H. Hoynes & R. Moffitt, "undated". "The effectiveness of financial work incentives in DI and SSI: Lessons from other transfer programs," Institute for Research on Poverty Discussion Papers 1073-95, University of Wisconsin Institute for Research on Poverty.
    4. Jonathan S. Leonard, 1985. "Labor Supply Incentives and Disincentives for the Disabled," NBER Working Papers 1744, National Bureau of Economic Research, Inc.
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    Keywords

    Disability; Vocational Rehabilitation;

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