Abstract

http://ssrn.com/abstract=1970314
 
 

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What Explains State Variation in SSDI Application Rates?


Norma B. Coe


University of Washington - Department of Health Services; Boston College - Center for Retirement Research

Kelly Haverstick


Boston College - Center for Retirement Research

Alicia H. Munnell


Boston College - Center for Retirement Research

Anthony Webb


Boston College - Center for Retirement Research

December 9, 2011

Center for Retirement Research at Boston College Working Paper No. 2011-23

Abstract:     
Social Security Disability Insurance (SSDI) applications and receipts vary greatly by state. This paper investigates the extent to which this geographic variation in SSDI applications reflects differences in health, demographics, and employment characteristics, state policies, and politics. We find that demographic, health, and employment characteristics of the state have the greatest effect on state-level variations in SSDI application rates, explaining over 70 percent of the variation. State policy concerning mandated employer-sponsored disability insurance (also known as temporary disability insurance or TDI) has a small negative effect on overall SSDI applications. This finding supports the principle underlying many recent SSDI reform plans: temporary disability insurance coverage could save the SSDI program considerable funds in the long run. Further, when we look to explain variation within a state, we find that state changes in health insurance regulation are negatively correlated with the SSDI application rate. This could be an indication that the Affordable Care Act (ACA) may have spillovers to the SSDI program.

Number of Pages in PDF File: 37

Keywords: social security disability insurance, SSDI, demographic, health, employment

JEL Classification: H55, J26

working papers series


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Date posted: December 10, 2011  

Suggested Citation

Coe, Norma B. and Haverstick, Kelly and Munnell, Alicia H. and Webb, Anthony, What Explains State Variation in SSDI Application Rates? (December 9, 2011). Center for Retirement Research at Boston College Working Paper No. 2011-23. Available at SSRN: http://ssrn.com/abstract=1970314 or http://dx.doi.org/10.2139/ssrn.1970314

Contact Information

Norma B. Coe (Contact Author)
University of Washington - Department of Health Services ( email )
146 N. Canal St.
Seattle, WA 98103
United States
Boston College - Center for Retirement Research ( email )
140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States
Kelly Haverstick
Boston College - Center for Retirement Research ( email )
Fulton Hall 550
Chestnut Hill, MA 02467
United States
Alicia Munnell
Boston College - Center for Retirement Research ( email )
Fulton Hall 550
Chestnut Hill, MA 02467
United States
617-552-1762 (Phone)
Anthony Webb
Boston College - Center for Retirement Research ( email )
Fulton Hall 550
Chestnut Hill, MA 02467
United States
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