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The Hidden Costs of Disability

Zofsha Merchant, Erin Troland () and Douglas Webber
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Erin Troland: https://www.federalreserve.gov/econres/erin-troland.htm

No 2025-01-10-1, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

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.

Date: 2025-01-10
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2025-01-10-1

DOI: 10.17016/2380-7172.3686

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