American Economic Review Vol. 106 No. 11 2016
Does Welfare Inhibit Success? The Long-Term Effects of Removing Low-Income Youth from the Disability Rolls
open access
Abstract
I estimate the effects of removing low-income youth with disabilities from Supplemental Security Income (SSI) on their earnings and income in adulthood. Using a regression discontinuity design based on a 1996 policy change in age 18 medical reviews, I find that youth who are removed from SSI at age 18 recover one-third of the lost SSI cash income in earnings. SSI youth who are removed and stay off SSI earn on average $4,400 annually, and they lose $76,000 in present discounted observed income over the 16 years following removal relative to those who do not receive a review.
- DOI
- 10.1257/aer.20151129
- Volume
- 106
- Issue
- 11
- Pages
- 3300-3330
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref