Search Results
Working Paper
Vocational Considerations and Trends in Social Security Disability
Along with health, Social Security Disability Insurance (SSDI) evaluates work-limiting disability by considering vocational factors including age, education, and past work experience. As the number of SSDI applicants and awards has increased, these vocational criteria are increasingly important to acceptances and denials. A unique state-level dataset allows us to estimate how these factors relate to the SSDI award process. These estimates are used to asses how changes to the demographic and occupational composition have contributed to awards trends. In our results, the prevalence of workers ...
Working Paper
Employment and Welfare Effects of the Quota for Disabled Workers in Brazil
I study the effect of a quota for disabled workers on the labor market and on welfare. Using a task-based model, I show that the effect of a quota will depend on the productivity of disabled workers and their labor supply elasticity. I estimate the productivity of disabled workers using variation from inspections of the quota. I find that the quota increased the hiring of disabled workers, but it reduced wages and employment of non-disabled workers, suggesting that the quota reduced firms’ productivity. I estimate the labor supply elasticity of disabled workers using heterogeneous exposure ...
Working Paper
The effect of Disability Insurance receipt on labor supply: a dynamic analysis
This paper estimates the effect of Disability Insurance receipt on labor supply, accounting for the dynamic nature of the application process. Exploiting the effectively random assignment of judges to disability insurance cases, we use instrumental variables to address the fact that those allowed benefits are a selected sample. We find that benefit receipt reduces labor force participation by 26 percentage points three years after a disability determination decision when not considering the dynamic nature of the applications process. OLS estimates are similar to instrumental variables ...
Working Paper
Labor Force Participation: Recent Developments and Future Prospects
Since 2007, the labor force participation rate has fallen from about 66 percent to about 63 percent. The sources of this decline have been widely debated among academics and policymakers, with some arguing that the participation rate is depressed due to weak labor demand while others argue that the decline was inevitable due to structural forces such as the aging of the population. In this paper, we use a variety of approaches to assess reasons for the decline in participation. Although these approaches yield somewhat different estimates of the extent to which the recent decline in ...
Journal Article
The future of Social Security Disability Insurance
Social Security Disability Insurance is projected to be insolvent before the end of the decade. How best to restore the program to long-term financial health depends on what has been driving its rapid growth. Demographic shifts and other predictable factors explain part of the increase. But a sizable share reflects increasing participation in the program across population groups. Curbing this growth is important for putting the program back on a sustainable fiscal path.
Working Paper
Just What the Nurse Practitioner Ordered: Independent Prescriptive Authority and Population Mental Health
We examine whether relaxing occupational licensing to allow nurse practitioners (NPs)?registered nurses with advanced degrees?to prescribe medication without physician oversight is associated with improved population mental health. Exploiting time-series variation in independent prescriptive authority for NPs from 1990?2014, we find that broadening prescriptive authority is associated with improvements in self-reported mental health and decreases in mental-health-related mortality, including suicides. These improvements are concentrated in areas underserved by psychiatrists and among ...
Working Paper
The Effects of Prescription Drug Monitoring Programs on Labor Market Activity and Credit Outcomes
We examine how the availability of prescription opioids affects labor market activity and household economic well-being. While greater access to opioids may lead people to substance use disorders and negative economic consequences, appropriate pain medication may allow some individuals to effectively participate in the labor market. We study prescription drug monitoring programs (PDMPs), which were designed to curb inappropriate opioid prescribing and assess how these policies affected labor force attachment and credit outcomes. We use variation across states in the timing of implementation ...
Journal Article
Rising disability rolls: causes, effects, and possible cures
Social Security disability insurance began in 1956 as a means of insuring a portion of the earned income of U.S. workers over age 50 against the risk of disability. In 1960, when coverage was extended to all workers, less than half a million workers were collecting benefits, and by 2012 this number had increased to 8.8 million people ? an increase from 0.3 percent to 3.6 percent of the population. Over this period, there have been a number of changes: Initially, the law insured only against permanent disabilities, but in 1965 the definition of disability was expanded to cover impairments ...
Working Paper
Occupational hazards and social disability insurance
Using retrospective data, we introduce evidence that occupational exposure significantly affects disability risk. Incorporating this into a general equilibrium model, social disability insurance (SDI) affects welfare through (i) the classic, risk-sharing channel and (ii) a new channel of occupational reallocation. Both channels can increase welfare, but at the optimal SDI they are at odds. Welfare gains from additional risk-sharing are reduced by overly incentivizing workers to choose risky occupations. In a calibration, optimal SDI increases welfare by 2.6% relative to actuarially fair ...
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.