Health, Wealth and Workforce Exit: Disability Insurance and Individual Accounts

Seligman, Jason S.

doi:10.2139/ssrn.733566

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Health, Wealth and Workforce Exit: Disability Insurance and Individual Accounts

Upjohn Institute Working Paper No. 05-116

46 Pages Posted: 1 Jun 2005

See all articles by Jason S. Seligman

Jason S. Seligman

U.S. Department of the Treasury - Office of Economic Policy

Abstract

Current debate on the Social Security Administration's long-term finance of benefits includes proposals for independent private investment via individual accounts. The author first investigates what implications disability might have for equity savings account balances. In light of results, incentives to exit the workforce ahead of retirement age are considered when a defined benefit program for disability insurance continues to be available. Included simulation uses historic wage series, equity market performance, and current OASDI regulations for cohorts retiring over the period of 1929 - 2003.

Keywords: Seligman, SSA, individual, accounts

JEL Classification: H52, I19

Suggested Citation: Suggested Citation

Seligman, Jason S., Health, Wealth and Workforce Exit: Disability Insurance and Individual Accounts. Upjohn Institute Working Paper No. 05-116, Available at SSRN: https://ssrn.com/abstract=733566 or http://dx.doi.org/10.2139/ssrn.733566