The Effect of Paid Sick Leave Mandates on Individuals with Disabilities: Evidence from Social Security Disability Claims

Paid sick leave mandates (PSLs), which have been adopted by 18 states and the District of Columbia, require employers to provide regular wages when workers take short-term leave for their own or a family member’s medical needs. This study is the first to explore the effects of PSL adoption on participation in the Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs, as well as the health of persons with disabilities. We find that statewide PSLs are associated with a 6-9 percent increase in initial claims for SSI and joint SSI/SSDI benefits. These applications translate to an increase in beneficiaries, strongest among children under age 18. An exploration of the primary mechanisms likely underlying this result reveals PSL-induced (1) increases in time spent offering informal caregiving of those with disabilities, which may reduce the costs of applying to SS(D)I programs, and (2) increases in health care utilization among children with disabilities. Evidence for negative work hours effects of PSLs is weaker, concentrated among spouses of persons with disabilities. Finally, we find that PSL mandates lead to modest improvements in health among both children and adults with disabilities.