Discussion Paper

The Hidden Costs of Disability


Abstract: Disability can be devastating financially for households, as it can severely limit earnings potential (Meyer & Mok, 2019; Benito, Glassman, & Hiedemann, 2016; Jolly, 2013). The earnings penalty for households with disabilities is estimated to range from 15 to 70 percent of earnings, depending on the nature of the disability (Meyer & Mok, 2019). Households receiving disability insurance (either employer-based or via Social Security) receive payments based on their prior earnings to help account for this earnings penalty.

https://doi.org/10.17016/2380-7172.3686

Access Documents

Authors

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2025-01-10

Number: 2025-01-10-1