Encyclopedia of Gerontology and Population Aging

Living Edition
| Editors: Danan Gu, Matthew E. Dupre

Social Security Disability Insurance

Living reference work entry
DOI: https://doi.org/10.1007/978-3-319-69892-2_373-1

Synonyms

Definition

The Social Security Disability Insurance (SSDI) program is the primary transfer program for disabled workers and their dependents in the United States. It provides partial earnings replacement to disabled workers and health insurance coverage through Medicare. The program awards benefits only for permanent and full disabilities but not for temporary or partial disabilities. To qualify, an individual must have sufficient earnings history, part of which must be recent.

Overview

SSDI was signed into law in 1956. Since then, the program rolls have grown significantly over time. According to the Social Security Administration (SSA 2018a), as of December of 2017, $142.8 billion were paid to 10.4 million beneficiaries (disabled workers and qualified dependents). Approximately 5% of Americans at ages 25–64 receive SSDI benefits. Total cash benefit payments and related...

This is a preview of subscription content, log in to check access.

References

  1. Armour P (2018) The role of information in disability insurance application: an analysis of the social security statement phase-in. Am Econ J Econ Pol 10(3):1–41.  https://doi.org/10.1257/pol.20160605CrossRefGoogle Scholar
  2. Autor DH (2011) The unsustainable rise of the disability rolls in the United States: causes, consequences, and policy options. National Bureau of economic research working paper no. 17697.  https://doi.org/10.3386/w17697
  3. Autor DH, Duggan MG (2003) The rise in the disability rolls and the decline in unemployment. Q J Econ 118(1):157–205.  https://doi.org/10.1162/00335530360535171CrossRefGoogle Scholar
  4. Autor DH, Duggan MG (2010) Supporting work: a proposal for modernizing the U.S. disability insurance system. Center for American Perspective and the Hamilton Project, Washington, DC. Available at https://economics.mit.edu/files/6281. Accessed on 29 Aug 2019Google Scholar
  5. Autor DH, Kostøl A, Mogstad M, Setzler B (2019) Disability benefits, consumption insurance, and household labor supply. Am Econ Rev 109(7):2613–2654.  https://doi.org/10.1257/aer.20151231CrossRefGoogle Scholar
  6. Ball S, Low H (2014) Do self-insurance and disability insurance prevent consumption loss on disability? Economica 81(323):468–490.  https://doi.org/10.1111/ecca.12079CrossRefGoogle Scholar
  7. Benítez-Silva H, Yin N (2014) Social security disability applications near retirement ages, manuscript, Stony Brook University and Baruch CollegeGoogle Scholar
  8. Benítez-Silva H, Buchinsky M, Rust J (2004). How large are the classification errors in the social security? National Bureau of economic research working paper no. 10219Google Scholar
  9. Black D, Daniel K, Sanders S (2002) The impact of economic conditions on disability program participation: evidence from coal boom and bust. Am Econ Rev 92(1):27–50.  https://doi.org/10.1257/000282802760015595CrossRefGoogle Scholar
  10. Bound J (1989) The health and earnings of rejected disability insurance applicants. Am Econ Rev 79(3): 482–503Google Scholar
  11. Bound J, Cullen J, Nichols A, Schmidt L (2004) The welfare implications of increasing disability insurance benefit generosity. J Public Econ 88(12):2487–2514.  https://doi.org/10.1016/j.jpubeco.2003.07.007CrossRefGoogle Scholar
  12. Burkhauser RV, Butler JS, Kim Y, Weathers RR II (1999) The importance of accommodation on the timing of disability insurance applications: results from the survey of disability and work and the health and retirement study. J Hum Resour 34(3):589–611CrossRefGoogle Scholar
  13. Chen S, van der Klaauw W (2008) The work disincentive effects of the disability insurance program in the 1990s. J Econ 142(2):757–784.  https://doi.org/10.1016/j.jeconom.2007.05.016CrossRefGoogle Scholar
  14. Duggan M, Singleton P, Song J (2007) Aching to retire? The rise in the full retirement age and its impact on the disability rolls. J Public Econ 91(7):1327–1350.  https://doi.org/10.1016/j.jpubeco.2006.12.007CrossRefGoogle Scholar
  15. French E, Song J (2014) The effect of disability insurance receipt on labor supply. Am Econ J Econ Pol 6(2):291–337.  https://doi.org/10.1257/pol.6.2.291CrossRefGoogle Scholar
  16. GAO (2010) Raising the retirement ages would have implications for older workers and SSA disability rolls, United States General Accounting Office, GAO-11-125. Available at https://www.gao.gov/products/GAO-11-125. Accessed on 29 Aug 2019
  17. Gelber A, Moore T, Strand A (2017) The effect of disability insurance payments on beneficiaries’ earnings. Am Econ J Econ Pol 9(3):229–261.  https://doi.org/10.1257/pol.20160014CrossRefGoogle Scholar
  18. Gelber A, Moore T, Strand A (2018) Disability insurance benefits save lives, Stanford Institute for economic policy research working paper. Available at https://siepr.stanford.edu/sites/default/files/publications/18-005.pdf. Accessed on 29 Aug 2019
  19. Goda GS, Shoven JB, Slavov SN (2019) Work incentives in the social security disability benefit formula. J Pension Econ Finance 18(2):165–189.  https://doi.org/10.1017/S1474747218000136CrossRefGoogle Scholar
  20. Kostøl AR, Mogstad M (2014) How financial incentives induce disability insurance recipients to return to work. Am Econ Rev 104(2):624–655.  https://doi.org/10.1257/aer.104.2.624CrossRefGoogle Scholar
  21. Kreider B (1998) Workers applications to social insurance programs when earnings and eligibility are uncertain. J Labor Econ 16(4):848–877.  https://doi.org/10.1086/209908CrossRefGoogle Scholar
  22. Low H, Pistaferri L (2015) Disability Insurance and the Dynamics of the Incentive Insurance Trade-off. Am Econ Rev 105(10):2986–3029CrossRefGoogle Scholar
  23. Maestas N, Mullen KJ, Strand A (2013) Does disability insurance receipt discourage work? Using examiner assignment to estimate causal effects of SSDI receipt. Am Econ Rev 103(5):1797–1829.  https://doi.org/10.1257/aer.103.5.1797CrossRefGoogle Scholar
  24. Mann D, Stapleton D (2012) A roadmap to a 21st century disability policy. Mathematica Center for Studying Disability Policy Issue Brief No. 12-01. Available at https://www.mathematica-mpr.com/our-publications-and-findings/publications/a-roadmap-to-a-21stcentury-disability-policy. Accessed on 29 Aug 2019
  25. Meyer B, Mok W (2018) Disability, earnings, income and consumption, J Public Econ 171:51–69.  https://doi.org/10.1016/j.jpubeco.2018.06.011
  26. Moore T (2015) The employment effects of terminating disability benefits. J Public Econ 124(C):30–43.  https://doi.org/10.1016/j.jpubeco.2015.02.004CrossRefGoogle Scholar
  27. Nagi SZ (1969) Disability and rehabilitation: legal, clinical, and self-concepts and measurement. Ohio State University Press, Columbus, OHGoogle Scholar
  28. OECD (2010) Sickness, disability and work: breaking the barriers. Organisation For Economic Co-Operation and Development, ParisCrossRefGoogle Scholar
  29. Smith RT, Lilienfeld AM (1971) The social security disability program: an evaluation study, research report 39, Social Security Office of Research and StatisticsGoogle Scholar
  30. Social Security Administration (2018a) Annual statistical supplement. Available at https://www.ssa.gov/policy/docs/statcomps/supplement/2018/. Accessed on 29 Aug 2019
  31. Social Security Administration (2018b) BOND final evaluation report. Available at https://www.ssa.gov/disabilityresearch/documents/BOND%20Deliv%2024e2%20FER%20Vol%201%2020181018.pdf. Accessed on 29 Aug 2019
  32. Social Security Advisory Board (2006) A disability system for the 21st century, Washington, DC. Available at https://www.ssab.gov/Details-Page/ArticleID/146/A-Disability-System-for-the-21st-Century. Accessed on 29 Aug 2019
  33. Stapleton DC, Coleman KA, Dietrich KA (1995) The effects of the business cycle on disability applications and awards. Lewin-VHI Inc., Falls Church, VAGoogle Scholar
  34. von Wachter T, Song J, Manchester J (2011) Trends in employment and earnings of allowed and rejected applicants to the social security disability insurance program. Am Econ Rev 101(7):3308–3329.  https://doi.org/10.1257/aer.101.7.3308CrossRefGoogle Scholar
  35. Wixon B, Strand A (2013) Identifying SSA’s sequential disability determination steps using administrative data, SSA research and statistics note no. 2013-01. Available at http://www.ssa.gov/policy/docs/rsnotes/rsn2013-01.html. Accessed on 29 Aug 2019
  36. Yin (2015) Partial benefits in the social security disability insurance program. J Risk Insur 82(2): 463–504.  https://doi.org/10.1111/jori.12028CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Marxe School of Public and International AffairsBaruch College, City University of New York; CUNY Institute for Demographic ResearchNew YorkUSA

Section editors and affiliations

  • Na Yin
    • 1
  1. 1.Marxe School of Public and International AffairsBaruch College, City University of New YorkNew YorkUSA