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Induced Entry Into The Social Security Disability Program: Using Past Sga Changes As A Natural Experiment, Nicole Maestas, Kathleen J. Mullen, Gema Zamarro

Education Reform Faculty and Graduate Students Publications

The number of American adults receiving benefits from the Social Security Disability Insurance (SSDI) program has increased dramatically over the past several decades. A proposed solution to rising program costs is to change program rules to encourage fully or partially recovered SSDI beneficiaries to return to work. One such option is a benefit offset policy, which would reduce SSDI benefits by $1 for every $2 of earned income. While a benefit offset could generate savings from increased labor supply and program exit among current beneficiaries, it could also generate unintended costs if the more generous work rules induce significant numbers …