The effect of disability insurance receipt on labor supply

Eric French and Jae Song ()

No WP-09-05, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: This paper estimates the effect of the Disability Insurance program on labor supply. We find that 30% of denied applicants and 15% of allowed applicants work several years after a disability determination decision. The earnings elasticity with respect to the after tax wage is 0.8. However, the labor supply of those over age 55, college graduates, and those with mental illness is not sensitive to allowance of benefits.

Keywords: Disability insurance; Labor supply (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-age, nep-ias and nep-lab
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: The Effect of Disability Insurance Receipt on Labor Supply (2014)
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