Unemployment Insurance and Disability Insurance in the Great Recession
Disability insurance (DI) applications and awards are countercyclical. One potential explanation is that unemployed individuals who exhaust their Unemployment Insurance (UI) benefits use DI as a form of extended benefits. We exploit the haphazard pattern of UI benefit extensions in the Great Recession to identify the effect of UI exhaustion on DI application, using both aggregate data at the state-month and state-week levels and microdata on unemployed individuals in the Current Population Survey. We find no indication that expiration of UI benefits causes DI applications. Our estimates are sufficiently precise to rule out effects of meaningful magnitude.
Non-Technical Summaries
- ...SSDI applications do not appear to respond to UI exhaustion. At the end of 2012, 8.8 million American adults were receiving...
Published Versions
Unemployment Insurance and Disability Insurance in the Great Recession, Andreas I. Mueller, Jesse Rothstein, Till M. von Wachter. in Labor Markets in the Aftermath of the Great Recession, Card and Mas. 2016
Andreas I. Mueller & Jesse Rothstein & Till M. von Wachter, 2016. "Unemployment Insurance and Disability Insurance in the Great Recession," Journal of Labor Economics, vol 34(S1), pages S445-S475.