Navigation Links
Study finds much different work histories for disability rejects, beneficiaries
Date:5/24/2011

Male disability applicants rejected for federal benefits tend to have lower earnings and labor force participation rates over the decade prior to applying for federal disability benefits, a new study finds.

Rejected applicants also work less despite being in better health than accepted applicants, according to the research led by economist Seth Giertz of the University of Nebraska-Lincoln.

On average, the study found, those rejected for benefits made 8.5 percent less than beneficiaries six years before applying and nearly 22 percent less just prior to application. Also, applicants who were rejected left the workforce faster as their application dates approached than those who were approved for benefits.

The findings suggest that many of the rejections may have been because applicants were not entirely motivated by health reasons when seeking disability.

"This adds to a growing literature suggesting that financial factors may be a driving factor in a large number of disability applications," said Giertz, assistant professor of economics at UNL. "Federal disability programs have undergone tremendous growth in recent decades and appear to be discouraging able-bodied adults from staying in the labor force."

The work sheds light on the efficacy of the government's disability screening process by factoring in applicants' pre-application work characteristics, and implies that rejected and accepted disability applicants have much different labor-market experiences before applying. Most notably, the rejected applicants were worse-off economically consistent with other research examining disability claims for those in declining industries.

On a positive note, the study suggests that the screening process does, at least to a certain degree, separate out those applicants partially motivated by economic considerations from those facing more severe health issues.

"However, the rapid growth of the program over a period where health has improved and jobs have become less physically demanding suggests that the system is broken and in need of reform," Giertz said. "Without changes, the federal disability programs are on a fiscally unsustainable path. For some, disability may be becoming a transition to retirement.

"This 'early retirement option' will be more appealing to people with fewer or declining economic opportunities such as those in in industries experiencing a negative economic shock."

Applications to U.S. federal disability programs have grown considerably in recent decades. In 2005, more than 2.12 million people applied for benefits from the Social Security Disability Insurance program, while the Supplemental Security Income program received nearly 1.1 million applications. For the former, that's more than five times the number of applications in 1960 and almost twice its 1990 levels.

For their analysis, the economists examined the behavior of respondents in the Health and Retirement Study who were linked to Social Security earnings records. That analysis also produced these findings:

  • Nearly 77 percent of applicants with less than a high-school diploma were eventually accepted, the highest rate of any education group.

  • Those ages 31 to 40 were the most likely to be accepted, at 86.5 percent, followed by ages 41 to 50, at 77.4 percent.

  • Accepted applicants were more likely to have heart, circulatory or blood conditions, but many of the other health conditions had similar acceptance rates.

"The direct fiscal stress resulting from the growth in federal disability benefits is exacerbated by the fact that disability beneficiaries become eligible for either Medicare or Medicaid, the two programs at the heart of the nation's long-term fiscal problems," Giertz said.


'/>"/>

Contact: Seth Giertz
sgiertz2@unl.edu
402-472-7932
University of Nebraska-Lincoln
Source:Eurekalert

Related medicine news :

1. Study Ties Blood Markers to Death Risk in Heart Failure
2. Temple-led study finds widening gap between distracted driving and legislation
3. Brisk walking may help men with prostate cancer, UCSF study finds
4. New study aims to improve long-term treatment for patients with bipolar disorder
5. Medicare improved Canadian doctors salaries: Queens University study
6. IUPUI study first to look at early treatment of depression to reduce heart disease risk
7. A Cultured Man Is a Healthier, Happier Man: Study
8. New study finds that violence doesnt add to childrens enjoyment of TV shows, movies
9. UTMB researcher receives $3 million NIH grant to study aging in Mexico
10. Study finds patient navigation increases colorectal cancer screening in ethnically diverse patients
11. Study links acetaminophen to lower prostate cancer risk
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:8/18/2017)... (PRWEB) , ... August 18, 2017 , ... ... and financial planning assistance that serves communities throughout southern Florida, is working to ... provide scholarship assets to children from low income families. , The Take Stock ...
(Date:8/18/2017)... ... ... The Golseth Agency, a Texas based insurance management and financial planning assistance provider ... organized to provide support to Christina Upchurch and her two children after the loss ... returned from out of town to find her husband passed away and their home ...
(Date:8/18/2017)... ... 18, 2017 , ... Yisrayl Hawkins, Pastor and Overseer at The House of Yahweh in Abilene, ... on false teachings pertaining to the mother of the Savior whom the world calls “Mother ... different picture of the role of this historical woman. , “The world bows, kisses ...
(Date:8/18/2017)... Vermont (PRWEB) , ... August 18, 2017 , ... ... phone numbers and call tracking and monitoring solutions, announced today the launch of ... site include a modern navigation and aesthetic, fully responsive design, and an enhanced ...
(Date:8/18/2017)... ... August 18, 2017 , ... “Three Narrow Roads”: a vivid and provocative ... published author, Rev. Dr. Burnett King Sr., is currently the pastor-teacher-visionary at Simply the ... Faith Track Club, Inc., a track-and-field program geared towards youth. , King shares, “When ...
Breaking Medicine News(10 mins):
(Date:8/8/2017)... Aug. 8, 2017   ... diluted (GAAP) loss per share from continuing operations ... revenues increased 16 percent to $110 million ... 27 percent to $161 million ... from continuing operations increased 8 percent to $0.93 ...
(Date:8/7/2017)... , Aug. 7, 2017  Endo International plc ... reached agreements to resolve virtually all known U.S. mesh ... discussions to resolve the known remaining U.S. claims at ... payments beginning in the fourth quarter of 2017 and ... of its second quarter 2017 results, the Company intends ...
(Date:8/2/2017)... , Aug. 2, 2017   Marshall County Hospital in Benton, ... proactively reduce the risk of hospital-acquired infections (HAIs). The new addition, Tru-D SmartUVC , ... energy to kill deadly pathogens such as C. diff , MRSA, MERS, Ebola and ... Tru-D SmartUVC ... Tru-D in action in a patient room ...
Breaking Medicine Technology: