Dynamic Programming Model Estimates of Social Security Disability Insurance Application Timing

Burkhauser, Richard V.; Butler, J. S.; Gumus, Gulcin

Dynamic Programming Model Estimates of Social Security Disability Insurance Application Timing

Abstract

This paper develops a dynamic programming model of the Social Security Disability Insurance (SSDI) application timing decision. We estimate the time to application from the point at which a health condition first begins to affect the kind or amount of work that a currently employed person can do. We use Health and Retirement Study (HRS) and restricted access Social Security earnings data for estimation. Our results show that the type of work-limiting health condition, presence of employer accommodation, and the relative value of income in the application state to income in the work state significantly affect the timing of SSDI application.

Date Issued

2004-01-01

Keywords

benefits; charts; data; dependence; Disability Employment Research; EDIcat4-DER; disability policy; Disability Programs; disability statistics; earnings; economic; economics; economy; employ; employing; employment; estimates; Federal Insurance Contributions Act; FICA; figures; graphs; Guiding Principles; income; information; Insurance; Labor Market; lack of income; long term disability; maternity leave; need; numbers; OASDI; Old Age; Survivors and Disability; Old Age; Survivors; and Disability Insurance; paternity leave; policies; policy; poor; poverty; procedures; public policy; public programs; regulation; retirement; rules; self-employment; short term disability; Social Security; Social Security Disability Insurance; SSDI; SSI; statistic; statistics; stats; statute; Supplemental Security Income; welfare; work; EDIcat5-DSR

Types

article