The Labor Market Effects of Disability Benefit Loss

The Labor Market Effects of Disability Benefit Loss

Author: Anikó Bíró

Publisher:

Published: 2023

Total Pages: 0

ISBN-13:

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Disability benefits are costly and tend to reduce labor supply. While spending can be contained by careful targeting, correcting past flaws in eligibility rules or assessment procedures may entail welfare costs. We study a major reform in Hungary that reassessed the health and working capacity of a large share of beneficiaries. Leveraging age and health cutoffs in the reassessment, we estimate employment responses to loss or reduction of benefits. We find that among those who left disability insurance due to the reform 58% were employed in the primary labor market, 6% participated in public works and 36% were out of work without benefits in the post-reform period. The consequences of leaving disability insurance sharply differed by pre-reform employment status. 81% of beneficiaries who had some employment in the pre-reform year worked, while only 33% of those without pre-reform employment did. The gains of the reform in activating beneficiaries were small and strongly driven by pre-reform employment status. This points to the importance of combining financial incentives with broader labor market programs that increase employability.


The Decline in Employment of People with Disabilities

The Decline in Employment of People with Disabilities

Author: David C. Stapleton

Publisher: W.E. Upjohn Institute

Published: 2003

Total Pages: 448

ISBN-13: 0880992603

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Topics covered include changes in the nature of work, rising health care expenditures, changing disability population, the American with Disabilities Act, social security disability insurance.


Disability

Disability

Author: Virginia P. Reno

Publisher: Brookings Institution Press

Published: 2010-12-01

Total Pages: 213

ISBN-13: 0815713487

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A Brookings Institution Press and National Academy for Social Insurance publication This book presents a cross-cutting assessment of disability income policy in public and private programs in the United States and in European countries. It evaluates whether there is a crisis in disability benefit policy, drawing on an in-depth review of Social Security disability programs by a panel of national experts. In addition to highlighting the panel's findings and recommendations for reform, the authors debate issues in financing and delivering quality health care through Medicare and Medicaid for working-age persons with disabilities, and they examine new developments in how Workers' Compensation organizes and finances cash benefits and health care for workers injured on the job. These developments in benefits and health policy for disabled workers are examined in light of budget constraints and challenges posed by today's rapidly changing labor market. The book concludes with a provocative discussion of "where are the jobs?"--an assessment of growing wage inequality between less skilled and highly skilled workers and the implication of labor market trends for goals of promoting employment among persons with chronic health conditions or disabilities. The contributors include Monroe Berkowitz, Rutgers University; Richard V. Burkhauser, Syracuse University; John Burton, Rutgers University; Philip de Jong, Institute for Law and Public Policy, Leiden University, the Netherlands; Alan Krueger, Princeton University; Katherine Newman, Harvard University; Van Ooms, Committee on Economic Development; Dallas Salisbury, Employee Benefit Research Institute; Leslie Scallet, Mental Health Policy Resource Center; and the Honorable Bruce C. Vladek, Health Care Financing Administration.


Disability and Work

Disability and Work

Author: Richard V. Burkhauser

Publisher:

Published: 1982

Total Pages: 154

ISBN-13:

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Disabled workers, social cost, social policy, USA - rights of the disabled, employment quota, disability benefits, vocational rehabilitation programmes, sheltered employment. References, statistical tables.


Disability, Work, and Cash Benefits

Disability, Work, and Cash Benefits

Author: Jerry L. Mashaw

Publisher: W. E. Upjohn Institute

Published: 1996

Total Pages: 448

ISBN-13:

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Reviews the US Social Security disability programme, with a view to determining whether rehabilitation and work could be incorporated in the income programme without greatly expanding costs or weakening the right to benefit for disabled persons.


The Impact of Local Labor Market Characteristics on the Disability Process

The Impact of Local Labor Market Characteristics on the Disability Process

Author: L. Scott Muller

Publisher: BiblioGov

Published: 2013-06

Total Pages: 62

ISBN-13: 9781289024253

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This report examines the impact of local labor market characteristics on three steps in the disability process: The perception of oneself as disabled; the decision to apply for benefits under the social security disability insurance program (SSDI); and the determination of disability status under SSDI. The research attempts to determine whether the elements of an individual's local economic environment play a role in the various steps of the disability process specifically above and beyond his or her own demographic characteristics and economic motivations. Among the key variables used to measure the local economic environment are the unemployment rate, the percent of families below the low income (poverty) level, rural location, occupational diversity and the percent of the unemployed exhausting their unemployment benefits. With the exception of the last variable, which is measured on a statewide basis, all variables pertain to the county of residence. The results contradict earlier findings which were based on aggregated data. No significant effect on any of the three elements in the disability process was found for either variable measuring the dimensions of the unemployment problem. With few exceptions, results from the other labor market variables were sketchy at best. One surprising result is noted with respect to the benefit replacement ratio, the variable intended to measure the relative attractiveness of SSDI benefits.


The Labor Market Side of Disability-Benefits Policy and Law

The Labor Market Side of Disability-Benefits Policy and Law

Author: Jon C. Dubin

Publisher:

Published: 2011

Total Pages: 0

ISBN-13:

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While most scholarship about the Social Security Administration's ("SSA") disability benefits programs and policy focuses on issues of medical eligibility or the programs' financing, this article analyzes the history, evolution, empirical vulnerabilities and current public policy issues generated from the much less examined labor market side of substantive disability benefits law and policy. Disability denotes a frame of reference - disability from work. Thus, the disability benefits programs have always evaluated eligibility with reference to the impact of a claimant's medical impairment on the ability to perform work in the American labor market. The primary administrative mechanism for ascertaining the availability of less demanding work to which disability claimants might adjust is an innovative medical-vocational matrix or "grid" regulation that takes administrative notice of job characteristics, job incidence, and adaptation assumptions based on the U.S. Department of Labor's ("DOL") first occupational taxonomy, the Dictionary of Occupational Titles ("DOT") and other government surveys. However, the empirical data about the labor market upon which the grid regulation was based is nearly half a century old and dependent upon an occupational taxonomy (the DOT) that was discontinued twenty years ago. In addition, changes in disability policy and social welfare policy from the Americans with Disability Act ("ADA") of 1990 and the Personal Responsibility and Work Opportunity Reconciliation Act ("PRWORA") of 1996 that emphasize work over benefit receipt have provided impetus to reconceptualize disability benefits eligibility. Because of the complexity of the disability benefit programs' existing labor market adjudicative process, the empirical vulnerabilities in the present system and the public policy currents from the ADA and PRWORA, a variety of alternatives has been suggested for altering or modifying the present system for adjudicating labor market work adjustment issues. This article evaluates those alternatives and concludes that the SSA should employ a "mend it don't end it" approach to the adjudication of labor market considerations in the disability benefits programs. It argues that the suggested alternatives to the present system are either fundamentally misguided or politically unpalatable. It urges acceptance of the National Research Council's recommendation from a report issued in March 2010 for the DOL and SSA to collaborate on completion of an up-to-date and methodologically appropriate labor market taxonomy to support an updated grid's empirical bases for continued use. It further advocates for institutionalizing at least decennial revision of the underlying labor market data and taxonomy to enhance the grid's temporal reliability on a continuing basis. Finally, it eschews usage of a grid updating or revision process as an opportunity to tighten or restrict benefit eligibility in light of the consequences of wrongful disability benefit denial in a post-welfare reform reality of substantially restricted safety net alternatives and in a depressed and constricted economy for characteristically low-skilled, disability benefit claimants.


Compensating Wounded Warriors

Compensating Wounded Warriors

Author: Paul Heaton

Publisher: RAND Corporation

Published: 2012-06-28

Total Pages: 112

ISBN-13: 9780833059314

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This comprehensive, quantitative assessment of how injury sustained by service members deployed to Iraq and Afghanistan affects their subsequent labor market earnings also explores the extent to which retirement and disability payments compensate for any resulting earnings losses. The analysis controls for a rich array of individual-level characteristics, including labor market outcomes prior to deployment.