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Dynamic Programming Model Estimates of Social Security Disability Insurance Application Timing

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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.

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2004-01-01

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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

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