scholarly journals Work Incentives in the Social Security Disability Benefit Formula

2015 ◽  
Author(s):  
Gopi Shah Goda ◽  
John Shoven ◽  
Sita Slavov
Keyword(s):  
Social Security ◽  
Work Incentives ◽  
Disability Benefit ◽  
The Social ◽  
Social Security Disability

scholarly journals Work incentives in the Social Security Disability benefit formula

2018 ◽  
Vol 18 (2) ◽  
pp. 165-189 ◽  
Author(s):  
GOPI SHAH GODA ◽  
JOHN B. SHOVEN ◽  
SITA NATARAJ SLAVOV
Keyword(s):  
Social Security ◽  
Older Workers ◽  
Extensive Margin ◽  
Disability Benefit ◽  
Payroll Tax ◽  
Payroll Taxes ◽  
The Social ◽  
Social Security Disability ◽  
Work Disincentives ◽  
Different Levels

AbstractWe examine the connection between taxes paid and benefits accrued under the Social Security Disability Insurance (SSDI) program on both the intensive and extensive margins. We perform these calculations for stylized workers given the existing benefit structure and disability hazard rates. On the intensive margin, we examine the effect of an additional dollar of earnings on the marginal payroll taxes contributed and future benefits earned. We find that the present discounted value of disability benefits received from an additional dollar of earnings, net of the SSDI payroll tax, generally declines with age, becoming negative around age 40 and reaching almost zero at age 63. On the extensive margin, we determine the effect of working an additional year on the additional payroll taxes and future benefits as a percentage of income. The return to working an additional year at an income level just large enough to earn Social Security credits for the year is large and positive through age 60. However, the return to working an additional full year is substantially smaller and becomes negative at approximately age 57. Thus, older workers face strong incentives to earn enough to obtain creditable coverage through age 60, but they face disincentives for additional earnings. In addition, workers aged 61 and older face work disincentives at any level of earnings. We repeat this analysis for stylized workers at different levels of earnings and find that, while the program transfers resources from high earners to low earners, the workers experience similar patterns in the returns to working.

Caught in a Social Safety Net: Perspectives of Recipients of Social Security Disability Programs on Employment

2007 ◽  
Vol 38 (2) ◽  
pp. 5-13 ◽  
Author(s):  
Marjorie F. Olney
Keyword(s):  
Social Security ◽  
Safety Net ◽  
Full Time ◽  
Disability Benefit ◽  
Social Safety Net ◽  
Quantitative Studies ◽  
The Social ◽  
Medical Benefits ◽  
Part Time ◽  
Social Security Disability

It is estimated that 15-30 percent of people who are on the Social Security Administration's (SSA) disability benefit programs would like to work. However, despite a number of incentives, few leave benefit programs and become employed. A qualitative study with SSA recipients, all of whom expressed a desire to work, was conducted to augment findings from previous quantitative studies. The most common barrier to employment mentioned by participants was the SSA system itself which was viewed as an institution breeding fear and mistrust. Respondents identified three scenarios that would allow them to work: a full-time job with medical benefits, a part-time job that would allow them to maintain SSA benefits, or a full-time job with sufficient income to afford medical benefits.

Social Security Disability Application Experiences of People With Multiple Sclerosis in the United States

2007 ◽  
Vol 9 (4) ◽  
pp. 131-138 ◽  
Author(s):  
Lisa I. Iezzoni ◽  
Long Ngo ◽  
R. Philip Kinkel
Keyword(s):  
Multiple Sclerosis ◽  
Social Security ◽  
Disability Insurance ◽  
The United States ◽  
Legal Assistance ◽  
Income Support ◽  
Social Security Administration ◽  
The Social ◽  
Working Age ◽  
Social Security Disability

Studies suggest that more than half of working-age Americans with multiple sclerosis (MS) are unemployed because of their health. Many turn to public disability insurance for income support, applying through the Social Security Administration for either Social Security Disability Insurance (SSDI), which provides benefits to formerly employed people, or Supplemental Security Income (SSI), which supports impoverished individuals. Anecdotal reports suggest that many patients with MS face considerable problems when applying for federal disability benefits. To gather more systematic information about these experiences, we surveyed 983 working-age people with MS nationwide from May through November 2005. Most (60.2%) were unemployed; 36.4% had federal disability insurance, with 27.8% having SSDI alone. Almost one third (31.3%) had their initial SSDI application denied, and 31.9% used legal assistance when applying for this benefit. Although the time elapsed between SSDI application and approval was <12 months for 60.4% of applicants, 12–23 months passed for 19.8% and 24+ months for another 19.8%. Among people without SSDI, 15.4% had applied for this benefit at some time. Failure to meet disability criteria caused 60.3% of rejections, and inadequate documentation contributed to 32.1%. Neurologists must fully document the breadth of MS-related impairments in their patients' disability applications.

An empirical analysis of the social security disability application, appeal, and award process

1999 ◽  
Vol 6 (2) ◽  
pp. 147-178 ◽  
Author(s):  
Hugo Benı́tez-Silva ◽  
Moshe Buchinsky ◽  
Hiu Man Chan ◽  
John Rust ◽  
Sofia Sheidvasser
Keyword(s):  
Social Security ◽  
Empirical Analysis ◽  
The Social ◽  
Social Security Disability
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