The Effect of Disability Insurance Receipt on Labor Supply

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2014
Volume: 6
Issue: 2
Pages: 291-337

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper exploits the effectively random assignment of judges to Disability Insurance cases to estimate the causal impact of Disability Insurance receipt on labor supply. We find that benefit receipt reduces labor force participation by 26 percentage points three years after a disability determination decision, although the reduction is smaller for older people, college graduates, and those with mental illness. OLS and instrumental variables estimates are similar. Furthermore, over 60 percent of those denied benefits by an administrative law judge are subsequently allowed benefits within ten years, showing that most applicants apply, reapply, and appeal until they get benefits.

Technical Details

RePEc Handle
repec:aea:aejpol:v:6:y:2014:i:2:p:291-337
Journal Field
General
Author Count
2
Added to Database
2026-01-25