Bound John

Jacobson Louis S

Jae Song

Joyce Manchester

Martin Teran

Parsons Donald O

Social Security Administration

Stapleton David

Till von Wachter

von Wachter Till

 Longitudinal administrative data show that rejected male applicants to the Disability Insurance (DI) program who are younger or have low-mortality impairments such as back pain and mental health problems exhibit substantial labor force attachment. While we confirm that employment rates of older rejected applicants are low, continued high numbers of younger and low-mortality beneficiaries have raised the potential employment of DI beneficiaries. Three findings support economic inducement to apply. Mean preapplication earnings have fallen, rejected applicants experience preapplication declines in earnings, and beneficiaries whose first applications were rejected at the DDS level but who ultimately received benefits exhibit substantial employment. JEL: H55, J14, J28, J31 </jats:p

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The American Economic Review

Trends in Employment and Earnings of Allowed and Rejected Applicants to the Social Security Disability Insurance Program

Trends in Employment and Earnings of Allowed and Rejected Applicants to the Social Security Disability Insurance Program

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