Do Workers Injured on the Job and Covered by Workers Compensation End Up on SSDI?

Daniel Ladd and David Neumark

Working Papers from University of Michigan, Michigan Retirement Research Center

Abstract: We use data from the Health and Retirement Study (HRS) and matched Social Security Administration (SSA) data to study two questions. First, we examine evidence on whether workers who suffer permanently disabling injuries covered by workers\rquote compensation (WC) subsequently end up on Social Security Disability Insurance (SSDI). Second, under some conditions, SSDI benefits are supposed to be reduced for workers receiving WC benefits (\ldblquote offsets\rdblquote ). Offsets are most relevant for workers with WC-compensable, permanently disabling injuries. Our analysis captures data on WC benefit receipt from the HRS and links it to SSA data on WC and SSDI recipients. We find that SSA appears to be missing data on WC benefits for a sizable share of WC-benefit recipients, and that the frequency of SSDI benefit reduction because of the WC offset seems surprisingly low.

Pages: 39 pages
Date: 2021-09
New Economics Papers: this item is included in nep-age
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