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Journal Article
A new look at the distributional effects of economic growth during the 1980s: a comparative study of the United States and Germany
Beginning in 1983, and following the worst recession since the Great Depression, the United States experienced six years of uninterrupted economic growth, the longest such period since World War II. Along with this expansion came an increase in income inequality that many suggest diminished the middle class and made the United States unique among industrialized nations in its pace of economic growth and increase in income equality. This paper addresses these issues by using kernel density estimation to document changes in the United States income distribution during the 1980s economic ...
Working Paper
Protecting working-age people with disabilities: experiences of four industrialized nations
Although industrialized nations have long provided public protection to working-age individuals with disabilities, the form has changed over time. The impetus for change has been multifaceted: rapid growth in program costs; greater awareness that people with impairments are able and willing to work; and increased recognition that protecting the economic security of people with disabilities might best be done by keeping them in the labor market. We describe the evolution of disability programs in four countries: Germany, the Netherlands, Sweden, and the United States. We show how growth in the ...
Journal Article
Recent declines in work and income among men with disabilities
Journal Article
Disability and work: the experiences of American and German men
This paper compares the economic well-being of men with disabilities in the United States and Germany. The results indicate that while the prevalence of disability is similar, the social institutions developed in the two countries result in quite different patterns of employment, transfer receipt, and economic well-being among the population with disabilities. However, while work is more important among German men with disabilities, it also is a very important component of the economic well-being of American men with disabilities. Furthermore, at least initially, a significant fraction of men ...
Journal Article
The changing role of disabled children benefits
The U.S. federal government?s program that provides cash benefits to low-income families with a disabled child has grown rapidly over the past 25 years. This growth reflects changes in the implementation of the program rather than declines in children?s health or family income. Unfortunately, most disabled children from families that receive such benefits do not become employed when they grow up, so these policy changes may relegate these children to lifetime government support?probably near the poverty threshold?at the expense of taxpayers.
Working Paper
Disability Benefit Growth and Disability Reform in the U.S.: Lessons from Other OECD Nations
Unsustainable growth in program costs and beneficiaries, together with a growing recognition that even people with severe impairments can work, led to fundamental disability policy reforms in the Netherlands, Sweden, and Great Britain. In Australia, rapid growth in disability recipiency led to more modest reforms. Here we describe the factors driving unsustainable DI program growth in the U.S., show their similarity to the factors that led to unsustainable growth in these other four OECD countries, and discuss the reforms each country implemented to regain control over their cash transfer ...
Working Paper
The timing of disability insurance application: a choice-based semiparametric hazard model
We use a choice-based subsample of Social Security Disability Insurance applicants from the 1978 Social Security Survey of Disability and Work to test the importance of policy variables on the timing of application for disability insurance benefits following the onset of a work limiting health condition. We correct for choice-based sampling by extending the Manski-Lerman (1977) correction to the likelihood function of our continuous time hazard model defined with semiparametric unmeasured heterogeneity and find that this correction significantly affects the results. We find that economic ...
Working Paper
Evaluating the Success of President Johnson's War on Poverty: Revisiting the Historical Record Using a Full-Income Poverty Measure
We evaluate progress in President's Johnson's War on Poverty. We do so relative to the scientifically arbitrary but policy relevant 20 percent baseline poverty rate he established for 1963. No existing poverty measure fully captures poverty reductions based on the standard that President Johnson set. To fill this gap, we develop a Full-income Poverty Measure with thresholds set to match the 1963 Official Poverty Rate. We include cash income, taxes, and major in-kind transfers and update poverty thresholds for inflation annually. While the Official Poverty Rate fell from 19.5 percent in 1963 ...
Working Paper
Economic Outcomes of Working-Age People with Disabilities over the Business Cycle: An Examination of the 1980s and 1990s
We examine the rate of employment and the household income of the working-age population (aged 25-61) with and without disabilities over the business cycles of the 1980s and 1990s using data from the March Current Population Survey and the National Health Interview Survey. In general, we find that while the employment of working-age men and women with and without disabilities exhibited a procyclical trend during the 1980s business cycle, this was not the case during the 1990s expansion. During the 1990s, the employment of working-age men and women without disabilities continued to be ...
Working Paper
The Supplemental Security Income Program