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The Health and Earnings of Rejected Disability Insurance Applicants

John Bound

No 2816, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Applicants for Social Security Disability Benefits who fail to pass the medical screening form a natural 'control' group for beneficiaries. Data drawn from the 1972 and 1978 surveys of the disabled done for the Social Security Administration show that fewer than 50% of rejected male applicants work. Typical earnings of those that do are less than 50% of median earnings for other men their age. These data cast doubt on recent econometric work which suggests that the disincentive effects of DI have been substantial.

Date: 1989-01
Note: LS
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Published as The American Economic Review, Vol. 79, No. 3, pp. 482-503, (June 1989).

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