Findings on Economic Policy Discussed by Investigators at NBER (The Effect of Disability Insurance Payments on Beneficiaries’ Earnings)

By a News Reporter-Staff News Editor at Economics Week -- Data detailed on Economics - Economic Policy have been presented. According to news reporting out of Cambridge, Massachusetts, by VerticalNews editors, research stated, "A crucial issue is whether social insurance affects work decisions through income or substitution effects."

Our news journalists obtained a quote from the research from NBER, "We examine this in the context of US Social Security Disability Insurance (DI), exploiting discontinuous changes in the benefit formula with a regression kink design to estimate the income effect of payments on earnings and employment. Using administrative data on all new DI beneficiaries from 2001 to 2007, our preferred estimate is that an increase in DI payments of $1 causes an average decrease in beneficiaries' earnings of $0.20 and that annual employment rates decrease by 1.3 percentage points per $1,000 of DI payments."

According to the news editors, the research concluded: "These findings suggest that the income effect accounts for a majority of DI-induced reductions in earnings."

For more information on this research see: The Effect of Disability Insurance Payments on Beneficiaries' Earnings. American Economic Journal-Economic Policy, 2017;9(3):229-261. American Economic Journal-Economic Policy can be contacted at: Amer Economic Assoc, 2014 Broadway, Ste 305, Nashville, TN 37203, USA.

Our news journalists report that additional information may be obtained by contacting A. Gelber, NBER, Cambridge, MA 02138, United States. Additional authors for this research include T.J. Moore and A. Strand.

Keywords for this news article include: Cambridge, Massachusetts, United States, North and Central America, Economic Policy, Economics, NBER.

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