Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

How Do Unemployment Insurance Benefits Affect the Decision to Apply for Social Security Disability Insurance?

How Do Unemployment Insurance Benefits Affect the Decision to Apply for Social Security... <p>This paper examines whether Unemployment Insurance (UI) benefits affect the decision to apply for Social Security Disability Insurance (DI). Using data from the Survey of Income and Benefits matched to administrative records on DI applications, I find that higher UI benefits reduce applications for DI. This substitution effect is imprecisely estimated but economically significant, implying that a $1.00 increase in UI benefits reduces DI expenditures by 15 cents. Recognizing this costsaving effect would increase the optimal UI benefit level by more than 20 percent for coefficients of relative risk aversion ranging from two to five.</p> http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

How Do Unemployment Insurance Benefits Affect the Decision to Apply for Social Security Disability Insurance?

Journal of Human Resources , Volume 51 (1) – Feb 9, 2016

Loading next page...
 
/lp/university-of-wisconsin-press/how-do-unemployment-insurance-benefits-affect-the-decision-to-apply-aaNlmckgof
Publisher
University of Wisconsin Press
Copyright
©by the Board of Regents of the University of Wisconsin System
ISSN
1548-8004

Abstract

<p>This paper examines whether Unemployment Insurance (UI) benefits affect the decision to apply for Social Security Disability Insurance (DI). Using data from the Survey of Income and Benefits matched to administrative records on DI applications, I find that higher UI benefits reduce applications for DI. This substitution effect is imprecisely estimated but economically significant, implying that a $1.00 increase in UI benefits reduces DI expenditures by 15 cents. Recognizing this costsaving effect would increase the optimal UI benefit level by more than 20 percent for coefficients of relative risk aversion ranging from two to five.</p>

Journal

Journal of Human ResourcesUniversity of Wisconsin Press

Published: Feb 9, 2016

There are no references for this article.