Trends in the Composition and Outcomes of Young Social Security Disability Awardees

46 Pages Posted: 6 Aug 2013

See all articles by Yonatan Ben-Shalom

Yonatan Ben-Shalom

Mathematica Policy Research, Inc.

David C. Stapleton

Mathematica Policy Research, Inc.

Date Written: June 2013

Abstract

A large share of new Social Security Disability (SSD) beneficiaries -- disabled workers and disabled adult children (DAC) -- are under age 40. Better information on the backgrounds, impairments, personal characteristics, and employment outcomes of these beneficiaries would help policymakers develop programs tailored to the needs and circumstances of various subgroups of such beneficiaries. We use administrative data on young SSD awardees' first awarded benefits between 1996 and 2007 to examine trends in these awardees’ composition and outcomes. We find that the composition of young SSD awardees changed substantially during this period. In 2007, compared to 1996, relatively more SSD awards to individuals under age 40 went to DAC versus disabled workers; to disabled workers and DAC who had received Supplemental Security Income (SSI) benefits, especially as children, versus those with no SSI history; and to disabled workers and DAC with psychiatric disorders versus those with other types of impairments. We also find that disabled workers who received SSI as children are far more likely than those who did not receive SSI as children to earn more than $1,000 annually (in 2007 dollars) as of the fifth post-award year; that compared to disabled workers, DAC are considerably less likely to work and earn more than $1,000 annually; and that both disabled workers and DAC are significantly less likely to earn more than 12 times the non-blind substantial gainful activity level (SGA) annually than they are to earn more than $1,000 annually. We discuss factors that may have contributed to the observed trends.

Keywords: Supplemental Security Income, Social Security Disability Insurance, disabled workers

Suggested Citation

Ben-Shalom, Yonatan and Stapleton, David C., Trends in the Composition and Outcomes of Young Social Security Disability Awardees (June 2013). Michigan Retirement Research Center Research Paper No. 2013-284, Available at SSRN: https://ssrn.com/abstract=2306581 or http://dx.doi.org/10.2139/ssrn.2306581

Yonatan Ben-Shalom (Contact Author)

Mathematica Policy Research, Inc. ( email )

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David C. Stapleton

Mathematica Policy Research, Inc. ( email )

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