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Disability Insurance and Health Insurance Reform: Evidence from Massachusetts

American Economic Review 2014 104(5), 329-335 open access
As health insurance becomes available outside of the employment relationship as a result of the Affordable Care Act (ACA), the cost of applying for Social Security Disability Insurance (SSDI)—potentially going without health insurance coverage during a waiting period totaling 29 months from disability onset —will decline for many people with employer-sponsored health insurance. At the same time, the value of SSDI and Supplemental Security Income (SSI) participation will decline for individuals who otherwise lacked access to health insurance. We study the 2006 Massachusetts health insurance reform to estimate the potential effects of the ACA on SSDI and SSI applications.

Disability Insurance Income Saves Lives

Journal of Political Economy 2023 131(11), 3156-3185 open access
We show that higher payments from US Social Security Disability Insurance (DI) reduce mortality. Using administrative data on new DI beneficiaries, we exploit discontinuities in the benefit formula through a regression kink design. We estimate that $1,000 more in annual DI payments decreases the annual mortality rate of lower-income beneficiaries by approximately 0.18–0.35 percentage points, implying an elasticity of mortality with respect to DI income of around −0.6 to −1.0. We find no robust evidence of an effect of DI income on the mortality of higher-income beneficiaries.

The Lifetime Impacts of the New Deal's Youth Employment Program

Quarterly Journal of Economics 2024 139(4), 2579-2635 open access
We study the lifetime effects of the first and largest American youth employment and training program in the United States-the Civilian Conservation Corps (CCC), 1933-1942. We match newly digitized enrollee records to census, World War II enlistment, Social Security, and death records. We find that longer service in the CCC led to improvements in height, health status, longevity, geographic mobility, and lifetime earnings but did not improve short-term labor market outcomes, including employment and wages. We address potential selection into CCC duration using several approaches, most importantly two newly developed control-function approaches that leverage unbiased estimates of the short-term effects of a randomized controlled trial of Job Corps (the modern version of the CCC). Our findings suggest that short- and medium-term evaluations of employment programs underestimate effects because they fail to capture lifetime effects and often ignore or underestimate health and longevity benefits that increase in magnitude at later ages.