The Reservation Wages of Social Security Disability Insurance Beneficiaries
Mitra, S. (2007), The Reservation Wages of Social Security Disability Insurance Beneficiaries, Social Security Bulletin, Vol. 67(4), pp. 89-111
24 Pages Posted: 10 Oct 2013
Date Written: October 9, 2013
There exists a lot of research on the reservation wages of the unemployed as a determinant of unemployment duration. Little is known about the reservation wages of those who are not in the labor force but might be potential labor force returnees, such as Social Security Disability Insurance (DI) beneficiaries. The main objective of this article is to assess what can be learned from the subjective reservation wages of DI beneficiaries. Using the New Beneficiary Data System(NBDS), the article assesses the magnitudes of reservation wages compared to the last wage earned and the benefit amount, as well as the determinants of reservation wages in a regression framework.
Keywords: Social Security Disability Insurance, Labor Supply, Reservation Wages
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