2016•IZA Journal of Labor PolicyOpen access

Earnings after DI: evidence from full medical continuing disability reviews

Jeffrey Hemmeter, Michelle Bailey

Abstract

Abstract Social Security Disability Insurance beneficiaries undergo periodic medical reviews to determine if they continue to be eligible for disability benefits. We examine how these reviews affect beneficiary well-being by using administrative data to track the earnings of beneficiaries for up to 5 years after their reviews. We estimate that a sizeable percentage of beneficiaries would work if their benefits were ceased in a medical review. However, many appear to be unable to maintain employment: only one in three would have earnings over the full follow-up period. Further, far fewer would reach any of several measures of earnings sufficiency. JEL codes: H51, H53, I38, J14

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Key concepts: Earnings, Beneficiary, Disability insurance, Social security, Social policy, Disability benefits, Work (physics), Business