The Employment Effects of Terminating Disability Benefits

Timothy Moore

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: Few Social Security Disability Insurance (DI) beneficiaries return to the labor force, making it hard to assess their likely employment in the absence of benefits. Using administrative data, I examine the employment of individuals who lost DI eligibility after the 1996 removal of drug and alcohol addictions as qualifying conditions. Approximately 22 percent started working at levels that would have disqualified them for DI, an employment response that is large relative to their work histories. Those who received DI for 2-3 years had the largest response, suggesting that a period of public assistance may maximize the employment of some disabled individuals.

Keywords: Disability insurance; social security; health capital; labor force participation (search for similar items in EconPapers)
JEL-codes: H53 H55 J14 (search for similar items in EconPapers)
Pages: 62pp
Date: 2015-01
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

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Related works:
Journal Article: The employment effects of terminating disability benefits (2015)
Working Paper: The Employment Effect of Terminating Disability Benefits (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2015n02

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