Labor Supply, Disability Benefits and Mental Illness

Susan Averett (), Richard Warner (), Jani Little () and Peter Huxley ()
Additional contact information
Richard Warner: Mental Health Center of Boulder County
Jani Little: Institute of Behavioral Science Data Analysis Center, University of Colorado
Peter Huxley: School of Psychiatry and Behavioural Sciences, University of Manchester

Eastern Economic Journal, 1999, vol. 25, issue 3, 279-288

Abstract: In this paper we build and estimate a structural labor supply model that explicitly models the budget constraint facing mentally ill individuals eligible for SSI benefits. Our results suggest that the labor supply behavior of this group is not very responsive to wage changes. This suggests that it may be non-economic factors that drive labor supply behavior of this group. Our structural model allows for policy simulations. These simulations indicate that raising the implicit tax rate on earnings of subsidizing wages may increase labor supply among this group, albeit by modest amounts.

Keywords: Disability; Labor Supply; Policy (search for similar items in EconPapers)
JEL-codes: H55 I12 J22 J28 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:25:y:1999:i:3:p:279-288

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