scholarly journals The Labor Supply Effects of Disability Insurance: Evidence from Automatic Conversion Using Administrative Data

Author(s):  
Nicole Maestas ◽  
Jae Song
2018 ◽  
Vol 108 ◽  
pp. 272-276
Author(s):  
Arezou Zaresani

Return-to-work policies in disability insurance (DI) programs allow beneficiaries to collect a portion of their benefits while working. I investigate whether a large increase in incentives to work in a return-to-work policy could induce benefit recipients to increase their labor supply. I quantify the effects on earnings and labor force participation using a sharp discontinuity in the induced incentives to work at the month of the policy change in a DI program in Canada. Using administrative data, I document that large incentives to work could induce beneficiaries to increase their labor supply both in intensive and extensive margins.


2013 ◽  
Vol 103 (5) ◽  
pp. 1797-1829 ◽  
Author(s):  
Nicole Maestas ◽  
Kathleen J Mullen ◽  
Alexander Strand

We present the first causal estimates of the effect of Social Security Disability Insurance benefit receipt on labor supply using all program applicants. We use administrative data to match applications to disability examiners and exploit variation in examiners' allowance rates as an instrument for benefit receipt. We find that among the estimated 23 percent of applicants on the margin of program entry, employment would have been 28 percentage points higher had they not received benefits. The effect is heterogeneous, ranging from no effect for those with more severe impairments to 50 percentage points for entrants with relatively less severe impairments. (JEL H55, J14, J22)


2018 ◽  
Vol 108 ◽  
pp. 388-391 ◽  
Author(s):  
Sarah Bana ◽  
Kelly Bedard ◽  
Maya Rossin-Slater

We use novel administrative data to study trends and disparities in usage of California's first-in-the-nation paid family leave (PFL) program. We show that take-up for both bonding with a new child and caring for an ill family member increased over 2005-2014. Most women combine PFL with maternity leave from the State Disability Insurance system, resulting in leaves longer than 6 weeks. Most men take less than the full 6 weeks of PFL. Individuals in the lowest earnings quartile and in small firms are the least likely to take leave. There are important differences in take-up across industries, especially for men.


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