Vocational Considerations and Trends in Social Security Disability

Michaud, Amanda M.; Nelson, Jaeger; Wiczer, David

doi:10.20955/wp.2016.018

Working Paper

Vocational Considerations and Trends in Social Security Disability

Abstract: Along with health, Social Security Disability Insurance (SSDI) evaluates work-limiting disability by considering vocational factors including age, education, and past work experience. As the number of SSDI applicants and awards has increased, these vocational criteria are increasingly important to acceptances and denials. A unique state-level dataset allows us to estimate how these factors relate to the SSDI award process. These estimates are used to asses how changes to the demographic and occupational composition have contributed to awards trends. In our results, the prevalence of workers in their 50s are especially important. Further, increasing educational attainment lowers applications and vocational awards.

Keywords: Disability Insurance; Vocational Criteria; Demographic Decomposition;

JEL Classification: E62; I13;

https://doi.org/10.20955/wp.2016.018