Dynamic programming model estimates of Social Security Disability Insurance application timing

Richard V. Burkhauser, J. S. Butler, Gulcin Gumus

Research output: Contribution to journalArticlepeer-review

22 Scopus citations

Abstract

This paper develops a dynamic programming model of the Social Security Disability Insurance (SSDI) application timing decision. We estimate the time to application from the point at which a health condition first begins to affect the kind or amount of work that a currently employed person can do. We use Health and Retirement Study (HRS) and restricted access Social Security earnings data for estimation. Our results show that the type of work-limiting health condition, presence of employer accommodation, and the relative value of income in the application state to income in the work state significantly affect the timing of SSDI application.

Original languageEnglish
Pages (from-to)671-685
Number of pages15
JournalJournal of Applied Econometrics
Volume19
Issue number6
DOIs
StatePublished - Oct 2004

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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