A model of Social Security Disability Insurance using matched SIPP/Administrative data

Lahiri, Kajal; Song, Jae; Wixon, Bernard

doi:10.1016/j.jeconom.2008.05.006

Cited by 24 publications

(9 citation statements)

References 33 publications

(65 reference statements)

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“…This issue has been recognized by policymakers in the US. Notably, in the 1980's, screening criteria for federal disability benefits programs were modified such that more consideration was given to work functioning rather than strict psychiatric diagnosis, and non-severe, multiple impairments potentially could be viewed as work disabling (Lahiri et al (1995(Lahiri et al ( , 2008; Autor & Duggan 2003).…”

Section: Introductionmentioning

confidence: 99%

Effects of Psychiatric Disorders on Labor Market Outcomes: A Latent Variable Approach Using Multiple Clinical Indicators

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In this paper, we estimate the effect of psychiatric disorders on labor market outcomes using a structural equation model with a latent index for mental illness, an approach that acknowledges the continuous nature of psychiatric disability. We also address the potential endogeneity of mental illness using covariance instruments as suggested in Lewbel (2012), thus not requiring questionable exclusion restrictions for identification. Data come from the US National Comorbidity Survey -Replication (NCS-R) and the National Latino and Asian American Study (NLAAS). We find that depression and generalized anxiety disorder detract from the employment and labor force participation of males and females; however, we do not find evidence of adverse effects of panic attack or social phobia on any work outcomes of either males or females. After addressing the potential endogeneity of mental illness, we continue to find that mental illness adversely affects employment and labor force participation for both males and females, but the effect on weeks worked and days missed at work are significant for males only. Using our structural model we assess the policy implications of some of the recommendations in the Affordable Care Act, relating to expansion of benefits for mental health and substance use disorder benefits. We find potential gains in employment for 3.2 million individuals and reduction in workplace cost of absenteeism of $18.9 billion due to improved mental health of individuals who are in most need of treatment. Terms of use: Documents inJEL-Code: I100.

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Section: Introductionmentioning

confidence: 99%

Effects of Psychiatric Disorders on Labor Market Outcomes: A Latent Variable Approach Using Multiple Clinical Indicators

2015

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“…While many have documented the relationship between SSDI applications and the unemployment rate (Rupp and Stapleton 1995;Autor and Duggan 2003;Lahiri, Song, and Wixon 2008), less work has been done on the relationship between UI generosity and the SSDI application rate. Recent work by Lindner (2011) finds that a more generous UI benefit delays SSDI application and Rutledge (2011) finds that UI benefit exhaustion affects the timing of SSDI application.…”

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confidence: 99%

What Explains State Variation in SSDI Application Rates?

et al. 2011

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other participants of the SSA seminar series for their thoughtful comments. AbstractSocial Security Disability Insurance (SSDI) applications and receipts vary greatly by state. This paper investigates the extent to which this geographic variation in SSDI applications reflects differences in health, demographics, and employment characteristics, state policies, and politics.We find that demographic, health, and employment characteristics of the state have the greatest effect on state-level variations in SSDI application rates, explaining over 70 percent of the variation. State policy concerning mandated employer-sponsored disability insurance (also known as temporary disability insurance or TDI) has a small negative effect on overall SSDI applications. This finding supports the principle underlying many recent SSDI reform plans: temporary disability insurance coverage could save the SSDI program considerable funds in the long run. Further, when we look to explain variation within a state, we find that state changes in health insurance regulation are negatively correlated with the SSDI application rate. This could be an indication that the Affordable Care Act (ACA) may have spillovers to the SSDI program.

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“…It is a survey of employers and collects information on minimum occupational requirements with respect to physical demands, mental/cognitive demands, vocational preparation needed, and environmental conditions (www.bls.gov/ors/). The role of functional capabilities and occupational requirements is the subject of empirical studies focusing on DI claims decisions (Lahiri, Vaughan, and Wixon 1995;Hu et al 2001;and Lahiri, Song, and Wixon 2008). More recently, using Health and Retirement Survey (HRS) data matched to SSA records, Schimmel Hyde et al 2018tabulated the preapplication occupational requirements of denied claimants by reason for denial, as well as the preapplication health/functional status of denied claimants by reason for denial.…”

Section: Background and Literaturementioning

confidence: 99%

Setting Expectations for Claimant Ability to Work: Investigating the Occupational Requirements and Functional Capacity of Workers with Early Onset Health Conditions

Houtenville

Ozabaci

2019

SSRN Journal

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When determining a claimant's eligibility for Social Security Disability Insurance (SSDI) benefits, the Social Security Administration (SSA) assesses whether his/her health condition (e.g., back/spine problems) sufficiently impairs his/her functional capacity (e.g., ability to lift/carry weight) so that the he/she is unable to meet the requirements (e.g., need to lift/carry 25 pounds) of his/her previous occupation and other possible occupations. Using data from the Survey of Income and Program Participation (SIPP) and Occupational Requirements Survey (ORS), we compare the occupational requirements of workers with and without a given health condition in order to understand what to expect from claimants with that health condition. Although sample sizes are limiting and ORS data collection is not yet complete, we find some evidence that workers' occupational requirements accommodate their health conditions. This evidence suggests that claimants with these health conditions may be able to fulfill the requirements in these occupations. We do find some evidence of the opposite causality: Workers may experience health conditions later in life from occupational requirements that may have caused their health conditions. This evidence is a caution against using data without onset information to inform claimant-ability expectations. Overall, this report provides evidence that national surveys with occupation, health, and function questions have the potential to inform revisions to the SSA disability determination process by providing information on people with health conditions who are working and meeting the requirements of a variety of occupations.

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A model of Social Security Disability Insurance using matched SIPP/Administrative data

Cited by 24 publications

References 33 publications

Effects of Psychiatric Disorders on Labor Market Outcomes: A Latent Variable Approach Using Multiple Clinical Indicators

Effects of Psychiatric Disorders on Labor Market Outcomes: A Latent Variable Approach Using Multiple Clinical Indicators

What Explains State Variation in SSDI Application Rates?

Setting Expectations for Claimant Ability to Work: Investigating the Occupational Requirements and Functional Capacity of Workers with Early Onset Health Conditions

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