The Health and Earnings of Rejected Disability Insurance Applicants
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NBER Working Paper No. 2816 (Also Reprint No. r1260)
Issued in August 1989
NBER Program(s): LS
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.
Published: The American Economic Review, Vol. 79, No. 3, pp. 482-503, (June 1989).
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