Tracking the Household Income of SSDI and SSI Applicants

71 Pages Posted: 17 Jan 2008

See all articles by John Bound

John Bound

University of Michigan; National Bureau of Economic Research (NBER)

Richard V. Burkhauser

Cornell University - Department of Policy Analysis & Management (PAM); University of Melbourne, Melbourne Institute

Austin Nichols

The Urban Institute

Date Written: May 1, 2001

Abstract

Using panel data from the Survey of Income and Program Participation linked to Social Security Administration disability determination records we trace the pattern of household income and the sources of that income from 38 months prior to 39 months following application for Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI). We find that the average applicant's labor earnings declines dramatically beginning six month before application but the average applicant's household income drops much less dramatically both in the months just before or just after application and over the next three years, and does so even for those denied benefits. However, we also found substantial heterogeneity in household income outcomes in both the SSDI and SSI applicant population. Our quantile regressions suggest that higher income households experience greater percentage declines in their post-application income. Such results are consistent with the lower replacement rate for higher earners established in the SSDI program and the low absolute level of protection provided to all SSI applicants regardless of income prior to application.

Suggested Citation

Bound, John and Burkhauser, Richard V. and Nichols, Austin, Tracking the Household Income of SSDI and SSI Applicants (May 1, 2001). Michigan Retirement Research Center Research Paper No. WP 2001-009, Available at SSRN: https://ssrn.com/abstract=1084568 or http://dx.doi.org/10.2139/ssrn.1084568

John Bound (Contact Author)

University of Michigan ( email )

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National Bureau of Economic Research (NBER)

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Richard V. Burkhauser

Cornell University - Department of Policy Analysis & Management (PAM) ( email )

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University of Melbourne, Melbourne Institute ( email )

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Australia

Austin Nichols

The Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

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