Income Security Policy Series
Kathryn H. Anderson and Theodore Pincus
Economic Policy | Economics | Public Affairs, Public Policy and Public Administration | Public Policy
This paper models the decision to apply for Social Security Disability Insurance Benefitsas a special case of a more general dynamic retirement decision model. It uses a multi-state, continuous-time hazard to test the effect of policy variables on the speed at which workers applyfor benefits following the onset of a work limitation. Policy variables are found to matter. A higher expected replacement rate increases the risk of application. This effect is significant in asmall sample of the general population and in a sample which also includes a weighted choice-based sample of disability insurance applicants.
Burkhauser, Richard V.; Butler, J.S.; Kim, Yang Woo; and Slotsve, George A., "Modeling Application for Disability Insurance as a Retirement Decision: A Hazard Model Approach Using Choice-Based Sampling" (1992). Center for Policy Research. 413.
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