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

Abstract

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

Suggested Citation

Mitra, Sophie, The Reservation Wages of Social Security Disability Insurance Beneficiaries (October 9, 2013). Mitra, S. (2007), The Reservation Wages of Social Security Disability Insurance Beneficiaries, Social Security Bulletin, Vol. 67(4), pp. 89-111, Available at SSRN: https://ssrn.com/abstract=2338122

Sophie Mitra (Contact Author)

Fordham University ( email )

441 East Fordham road
Bronx, NY 10458
United States

HOME PAGE: http://www.fordham.edu/economics/mitra

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