The Health and Earnings of Rejected Disability Insurance Applicants

38 Pages Posted: 15 Jul 2004 Last revised: 13 Sep 2010

See all articles by John Bound

John Bound

University of Michigan; National Bureau of Economic Research (NBER)

Date Written: 1989

Abstract

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.

Suggested Citation

Bound, John, The Health and Earnings of Rejected Disability Insurance Applicants (1989). NBER Working Paper No. w2816. Available at SSRN: https://ssrn.com/abstract=447230

John Bound (Contact Author)

University of Michigan ( email )

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National Bureau of Economic Research (NBER)

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