TRACKING THE HOUSEHOLD INCOME OF SSDI AND SSI APPLICANTS

John Bound · Richard V. Burkhauser · Austin Nichols

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Retirement, Disability, and Employment Labor market dynamics and wage inequality Social Policy and Reform Studies

Abstract

Using panel data from the Survey of Income and Program Participation linked to Social Security Administration disability determination records we trace the pattern of household income and the sources of that income from 38 months prior to 39 months following application for Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI). We find that the average applicant’s labor earnings declines dramatically beginning six months before application but the average applicant’s household income drops much less dramatically both in the months just before or just after application and over the next three years, and does so even for those denied benefits. However, we also found substantial heterogeneity in household income outcomes in both the SSDI and SSI applicant population. Our quantile regressions suggest that higher income households experience greater percentage declines in their post-application income. Such results are consistent with the lower replacement rate for higher earners established in the SSDI program and the low absolute level of protection provided to all SSI applicants regardless of income prior to application.

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2018Social Security Bulletin 1999An empirical analysis of the social security disability application, appeal, and award process 1996Employment and Economic Well-Being Following the Onset of a Disability: The Role for Public Policy 1995Modeling SSA's sequential disability determination process using matched SIPP data.2002Policy Watch: U.S. Disability Policy in a Changing Environment 2001A Structural Model of Social Security's Disability Determination Process

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