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来源类型Working Paper
规范类型报告
DOI10.3386/w4941
来源IDWorking Paper 4941
Disability Insurance Rejection Rates and the Labor Supply of Older Workers
Jonathan Gruber; Jeffrey D. Kubik
发表日期1994-11-01
出版年1994
语种英语
摘要Disability Insurance (DI), which provides income support to disabled workers, has been criticized for inducing a large fall in the labor force participation rate of older workers. We study the effects of one policy response designed to address this moral hazard problem: raising the rate at which DI claims are denied. Initial DI applications are decided at the state level, and, in response to a funding crisis for the DI program in the late 1970s, the states raised their rejection rates for first time applicants by 30% on average. The extent of this rise, however, varied substantially across states. We use this variation to estimate a significant reduction in labor force non-participation among older workers in response to denial rate rises. A 10% increase in denial rates led to a 2.7% fall in non- participation among 45-64 year old males; between 1/2 and 2/3 of this effect is a true reduction in labor force leaving, with the remainder accounted for by the return to work of denied applicants. We find some support for the notion that increases in denial rates effectively target their incentive effects to more able individuals; the fall in labor force non-participation was much stronger among more able workers, according to an anthropometric measure of disability.
主题Public Economics ; National Fiscal Issues ; Labor Economics ; Labor Supply and Demand
URLhttps://www.nber.org/papers/w4941
来源智库National Bureau of Economic Research (United States)
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条目标识符http://119.78.100.153/handle/2XGU8XDN/562359
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Jonathan Gruber,Jeffrey D. Kubik. Disability Insurance Rejection Rates and the Labor Supply of Older Workers. 1994.
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