Economic and Health Implications of Long-Term Unemployment: Earnings, Disability Benefits, and Mortality

Abstract

Data from the 1984 Survey of Income and Program Participation are linked to longitudinal records from the Social Security Administration to examine the relationship between the long-term unemployment that prime-aged (ages 25-55) male workers experienced around the time of the 1980-1982 twin recessions with earnings, receipt of either Disability Insurance or Supplemental Security Income (DI-SSI) benefits, and mortality. Separate estimations are made for those who voluntarily and involuntarily left employment and the combined sample of these two groups. We find that 20 years later, long-term joblessness was associated with significantly lower earnings and higher likelihoods of the receipt of DI-SSI benefits as well as mortality.

Keywords: Earnings, mortality, social security disability insurance

JEL Classification: H55, I31, J31, J63, J65