The Health and Earnings of Rejected Disability Insurance Applicants
38 Pages Posted: 15 Jul 2004 Last revised: 13 Sep 2010
Date Written: 1989
Applicants for Social Security Disability Benefits who fail to pass the medical screening form a natural 'control' group for beneficiaries. Data drawn from the 1972 and 1978 surveys of the disabled done for the Social Security Administration show that fewer than 50% of rejected male applicants work. Typical earnings of those that do are less than 50% of median earnings for other men their age. These data cast doubt on recent econometric work which suggests that the disincentive effects of DI have been substantial.
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