The Contribution and Potential of Data Harmonization for Cross-National Comparative Research

The promise of empirical evidence to inform policy makers about their population's health, wealth, employment and economic well being has propelled governments to invest in the harmonization of country specific micro data over the last 25 years. We review the major data harmonization projects launched over this period. These projects include the Luxembourg Income Study (LIS), the Cross-National Equivalent File (CNEF), the Consortium of Household Panels for European Socio-Economic Research (CHER), the European Community Household Panel (ECHP), the European Union Statistics on Income and Living Conditions (EU-SILC), and the Survey of Health, Aging and Retirement in Europe (SHARE). We discuss their success in providing reliable data for policy analysis and how they are being used to answer policy questions. While there have been some notable failures, on the whole these harmonization efforts have proven to be of major value to the research community and to policy makers.

How Policy Variables Influence the Timing of Social Security Disability Insurance Applications - Policy Brief

While the onset of a health based work limitation will affect a worker’s ability to remain on the job, it does not necessarily result in a swift and certain job exit and transition onto the disability rolls. The decision to leave the workforce and apply for SSDI benefits can be influenced both positively and negatively by policy variables. These two policy thrusts—SSDI transfers to replace lost earnings and accommodation to increase duration on the job—can send mixed signals to workers who experience the onset of a disability. Hence, understanding how such policies influence behavior for those who experience a disability is critical in developing policies that fully integrate people with disabilities into the workforce

A Guide to Disability Statistics from the Panel Study of Income Dynamics

This User Guide provides information on the Panel Study of Income Dynamics (PSID). The 2003 PSID is a nationally representative sample of over 7,000 families. The PSID began in 1968 with a sample of 4,800 families and re-interviewed these families on an annual basis from 1968-1997. Since then, it has re-interviewed them biennially. Following the same families and individuals since 1968, the PSID collects data on economic, health, and social behavior. (See http://psidonline.isr.umich.edu/ for detailed information on the PSID). Initially, the PSID identified disability by asking the head of the household whether he, or she when no adult male is present, had a physical or nervous condition that limits his or her ability to work. In 1981 the PSID began asking the head this question with respect to his spouse. Additional questions that provide an opportunity to expand this definition of disability were included in 2003. The User Guide makes use of these new questions to estimate the size of the population with disabilities and the prevalence rate of disability in the population, as well as the employment rate and level of economic well-being. The major strength of the PSID for those interested in disability research is its long-running information on families. No other nationally representative survey has captured such detailed information on the same families over such a long time. Such longitudinal data allows researchers to better understand the dynamics of the disability process and its consequences. Here we demonstrate the comparative advantage of the PSID over traditional cross-sectional data sets. Using the PSID, we identify persons with disabilities of various lengths and show the sensitivity of alternative definitions of the population with disabilities based on the duration of a disability. We also measure how the employment and economic well-being of individuals changes following the onset of a disability. Finally, we provide examples of how the PSID has been used with the German Socio-Economic Panel (GSOEP) to compare the employment and economic well-being of working-age people with disabilities in the United States and Germany. This analysis uses the equivalized data from these longitudinal datasets contained in the Cornell University Cross-National Equivalent File (CNEF)

Income Security for Workers: A Stressed Support System in Need of Innovation

The current mix of public and private programs to support workers after they experience disability onset provides benefits to millions of workers and former workers. Yet, despite the large and growing costs of these programs, the inflation-adjusted household incomes of workers with disabilities have been falling for over two decades, both absolutely and, especially, relative to the incomes of those without disabilities. The aging of the baby boom generation is likely to make matters worse, and the government’s fiscal circumstance will make it increasingly difficult to sustain existing public programs. Current public policy initiatives might eventually improve the disability support system, but they are not likely to ward off the adverse consequences of the pending crisis. Policy changes that leverage existing private sector practices and capabilities might achieve greater success, but have received little attention and are far from proven

Public policies for the working poor: The earned income tax credit versus minimum wage legislation

This paper documents the declining relationship between low hourly wages and low household income over the last half-century and how this has reduced the share of minimum wage workers who live in poor households. It then compares recent and prospective increases in the earned income tax credit (EITC) and the minimum wage as methods of increasing the labor earnings of poor workers. Data from the Current Population Survey (CPS) are used to simulate the effects of both programs. Increases in the EITC between 1989 and 1992 delivered a much larger proportion of a given dollar of benefits to the poor than did increases in the minimum wage from $3.35 to$4.25. Scheduled increases in the EITC through 1996 will also do far more for the working poor than raising the minimum wage.

Long-term Labor Force Exit and Economic Well-being: A Cross-National Comparison of Public and Private Income Support

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Curing the Dutch Disease: Lessons for United States Disability Policy

In the 1990s, the United States reformed welfare programs targeted on single mothers and dramatically reduced their benefit receipt while increasing their employment and economic wellbeing. Despite increasing calls to do the same for working age people with disabilities in the U.S., disability cash transfer program rolls continue to grow as their employment rates fall and their economic well-being stagnates. In contrast to the failure to reform United States disability policy, the Netherlands, once considered to have the most out of control disability program among OECD nations, initiated reforms in 2002 that have dramatically reduced their disability cash transfer rolls, while maintaining a strong but less generous social minimum safety net for all those who do not work. Here we review disability program growth in the United States and the Netherlands, link it to changes in their disability policies and show that while difficult to achieve, fundamental disability reform is possible. We argue that shifts in SSI policies that focus on better integrating working age men and women with disabilities into the work force along the lines of those implemented for single mothers in the 1990s, together with SSDI program changes that better integrate private and public disability insurance programs along the lines of the reforms in the Netherlands, offer the best hope of improving their employment rates and economic well-being as well as reducing SSDI/SSI program growth.

How Exits from the Labor Force of Death Impact Household Incomes: A Four Country Comparison of Public and Private Income Support

Government policies attempt to mitigate the economic risks to households of major life transitions. This paper focuses on two such transitions that social security systems typically insure against—long term exits from the labor market (retirement, disability, unemployment insurance) and the death of a household head or spouse (survivor’s insurance). We examine labor force exits of men at various ages in four countries--Canada, Germany, Great Britain, and the United States—using data from the Cross-National Equivalent File, a matched longitudinal data set. We focus on how average net-of-tax household income changes in the years before and after the event. We find that when one measures the change in economic well-being following a labor market exit by the fraction of lost labor earnings replaced by social security income, the decline in the household’s economic well-being is substantially overstated. When we compare net-of-tax household income before and after a long term exit from the labor market, we find that such drops are much less than those implied by a social security replacement rate and that differences across countries in the average drop are much less than those based on a social security replacement rate. We find the same pattern when we focus on how net-of-tax household income changes in the years before and after the death of a head or spouse. Declines in net-of-tax household income following such a death are much lower than the decline implied by a replacement of the deceased person’s labor earnings and social security benefits by their household’s post-death social security income. But the size of the change in individualized net-of-tax income following the death of a head or spouse is greatly affected by assumptions used to adjust for changes in household size.

The Contribution and Potential of Data Harmonization for Cross-National Comparative Research

The promise of empirical evidence to inform policy makers about their population?s health, wealth, employment and economic well being has propelled governments to invest in the harmonization of country specific micro data over the last 25 years. We review the major data harmonization projects launched over this period. These projects include the Luxembourg Income Study (LIS), the Cross-National Equivalent File (CNEF), the Consortium of Household Panels for European Socio-Economic Research (CHER), the European Community Household Panel (ECHP), the European Union Statistics on Income and Living Conditions (EU-SILC), and the Survey of Health, Aging and Retirement in Europe (SHARE). We discuss their success in providing reliable data for policy analysis and how they are being used to answer policy questions. While there have been some notable failures, on the whole these harmonization efforts have proven to be of major value to the research community and to policy makers

How Postsecondary Education Improves Adult Outcomes for Supplemental Security Income Children with Severe Hearing Impairments

This is a case study of SSI children who apply for postsecondary education at the National Technical Institute of the Deaf (NTID) within the Rochester Institute of Technology. We estimate the likelihood that an SSI child will graduate from NTID relative to other hearing impaired NTID applicants and estimate the influence of graduation from NTID on participation in the SSI adult program and later success in the labor market. To do so we create a unique longitudinal administrative records data set (n=5,638) based on administrative records from NTID linked to Social Security Administration (SSA) microdata. We find that SSI children who graduate from NTID spend less time on the SSI adult program and have higher earnings than those who do not graduate. However, we also find that SSI children who apply to NTID have a greater risk of not graduating than their fellow deaf students who did not participate in the SSI program as children. Our findings suggest that greater effort may be necessary to prepare SSI children for postsecondary education and that the currently SSA-funded youth transition demonstration projects are necessary to explore how such efforts can improve adult outcomes for SSI children with disabilities