Racial and Ethnic Disparities in SSDI Entry and Health

Racial disparities in the Social Security Disability Insurance (DI) program have long been a concern, yet little is known about how the health and entry patterns of DI recipients vary by race and ethnicity. In this paper, we examine trends in the racial/ethnic composition of DI recipients and show how the health of DI entrants and the responsiveness of DI entry to economic conditions and program rules differ across race and ethnicity. Our analysis uses the racial/ethnic categorization in Medicare administrative data, which we first validate against U.S. Census self-reports. We then document the race and ethnicity of all DI recipients since 1992. In examining entry patterns, we find that per capita DI entry is highest among Blacks and lowest among Asians, while illness burden, as measured by medical expenditure and mortality, is lowest among Asians and Hispanics and highest among Blacks and Natives. Additionally, we analyze the effects of poor economic conditions on DI entry for different racial and ethnic subgroups. Finally, we show racial/ethnic variation in the effect of an age-based change in the program’s eligibility rules, finding that the impact of relaxing the eligibility rules at ages 50 and 55 is largest among Natives and smallest among Asians.