An Analysis of Compositional Trends in Social Security Disability Insurance Awards,1960-1991

Abstract

This paper analyzes historical trends in the demographic and health-related characteristics of disabled worker beneficiaries of the Social Security Disability Insurance (SSDI) program since 1960. Descriptive trend data show SSDI awards are increasingly made not only to younger persons, but also to persons with health impairments that at any age typically require longer durations of program entitlement. As a result, the expected number of years a new awardee stays on the rolls has risen over time, putting additional pressure on already strained program financing. A time-series regression analysis suggests that these compositional trends are shaped by a complex set of external and internal forces, not just a single source of change such as the growth in the population insured for work disability. Health status trends turn out to be especially significant determinants of awards to younger beneficiaries. Some policy implications of compositional changes and their determinants are discussed.

Get full access to this article

View all access options for this article.

References

Board of Trustees, OASDI Trust Funds. ( 1993 -1994). Annual report. Washington, DC: U.S. Government Printing Office.

Bound, J. , & Waidmann, T. (1990). Disability transfers and the labor force attachment of older men: Evidence from the historical record (Working Paper 3437). Washington, DC: National Bureau of Economic Research .

Bureau of Labor Statistics. (1957- 1991, passim). Employment and earnings. Washington, DC: Author.

Chirikos, T. (1986). Accounting for the historical rise in work-disability prevalence. Milbank Quarterly, 64, 271-301.

Chirikos, T. (1993a). The relationship between health and labor market status. Annual Review of Public Health, 14, 293-312.

Chirikos, T. (1993b). The composition of disability beneficiary populations: Trends and policy implications. Washington, DC: U.S. Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation.

Dean, D. , & Dolan, R. (1991). Assessing the role of vocational rehabilitation in disability policy. Journal of Policy Analysis and Management , 10, 568-587.

Franklin, P. , & Hennessey, J. (1979). Effect of substantial gainful activity level on disabled beneficiary work patterns. Social Security Bulletin , 42(3), 3-17.

Hennessey, J. , & Dykacz, J. (1989). Projected outcomes and length of time in the disability insurance program. Social Security Bulletin, 52(9), 2-41.

10.

Lando, M. , Coate, M. , & Kraus, R. (1979). Disability benefit applications and the economy . Social Security Bulletin, 42( 10), 3-10.

11.

McCoy, J. , & Weems, K. (1989). Disabled-worker beneficiaries and disabled SSI recipients: A profile of demographic and program characteristics. Social Security Bulletin, 52(5), 16-28.

12.

National Center for Health Statistics. (1957 -1991, passim). Vital and health statistics. Washington, DC: Author.

13.

Social Security Administration. (1957- 1992, passim). Social Security Bulletin, Annual supplements . Washington, DC: Author.

14.

U.S. Department of Health and Human Services. ( 1992). The Social Security Disability Insurance program: An analysis (Report to OASDI Board of Trustees). Washington, DC: Author.

15.

Verbrugge, L. (1984). Longer life but worsening health? Trends in health and mortality of middle-aged and older persons. Milbank Quarterly , 62, 475-519.

16.

Weisbrod, B. (1970). Collective action and the distribution of income . In R. Haveman & J. Margolis (Eds.), Public expenditures and policy analysis (pp. 112-141 ). Chicago: Markham .

17.

Yelin, E. (1992). Disability and the displaced worker. New Brunswick, NJ: Rutgers University Press.