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Characteristics and Employment of Applicants for Social Security Disability Insurance over the Business Cycle

Lindner Stephan (lindners@ohsu.edu), Burdick Clark (cburdick@comscore.com) and Meseguer Javier (javier.meseguer@ssa.gov)
Additional contact information
Lindner Stephan: Oregon Health & Science University, Center for Health Systems Effectiveness, 3030 SW Moody Ave, Portland, OR97201, USA
Burdick Clark: comScore, Inc., Reston, VA20190, USA
Meseguer Javier: Social Security Administration, ORDP/ORES, 7 VA, 500 E Street, SW, Washington, DC20254, USA

The B.E. Journal of Economic Analysis & Policy, 2017, vol. 17, issue 1, 17

Abstract: We investigate the relationship between the unemployment rate and characteristics of applicants for Social Security Disability Insurance using administrative records of the universe of applicants between 1991 and 2008. As the unemployment rate rises, applications shift to those with higher work capacity who are rejected early in the eligibility determination process and have higher pre-application earnings and employment. However, post-application earnings and employment of denied applicants are slightly negatively related to the unemployment rate, suggesting that both compositional changes toward applications with higher work capacity and adverse economic conditions affect their employment and earnings.

Keywords: Social Security Disability Insurance; business cycle; disincentive effect (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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DOI: 10.1515/bejeap-2016-0095

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