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Unemployment Insurance and Disability Insurance in the Great Recession

Andreas Mueller, Jesse Rothstein () and Till von Wachter ()

No 19672, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Disability insurance (DI) applications and awards are countercyclical. One potential explanation is that unemployed individuals who exhaust their Unemployment Insurance (UI) benefits use DI as a form of extended benefits. We exploit the haphazard pattern of UI benefit extensions in the Great Recession to identify the effect of UI exhaustion on DI application, using both aggregate data at the state-month and state-week levels and microdata on unemployed individuals in the Current Population Survey. We find no indication that expiration of UI benefits causes DI applications. Our estimates are sufficiently precise to rule out effects of meaningful magnitude.

JEL-codes: H55 J65 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-ias
Note: AG
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Published as Unemployment Insurance and Disability Insurance in the Great Recession , Andreas I. Mueller, Jesse Rothstein, Till M. von Wachter. in Labor Markets in the Aftermath of the Great Recession , Card and Mas. 2016
Published as Andreas I. Mueller & Jesse Rothstein & Till M. von Wachter, 2016. "Unemployment Insurance and Disability Insurance in the Great Recession," Journal of Labor Economics, vol 34(S1), pages S445-S475.

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