What explains state variation in SSDI application rates?

Coe, Norma B., Kelly Haverstick, Alicia Haydock Munnell, and Anthony Webb. “What explains state variation in SSDI application rates?”. CRR WP 2011-23, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2011. http://hdl.handle.net/2345/bc-ir:104844.
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Abstract

Social Security Disability Insurance (SSDI) applications and receipts vary greatly by state. This paper investigates the extent to which this geographic variation in SSDI applications reflects differences in health, demographics, and employment characteristics, state policies, and politics. We find that demographic, health, and employment characteristics of the state have the greatest effect on state-level variations in SSDI application rates, explaining over 70 percent of the variation. State policy concerning mandated employer-sponsored disability insurance (also known as temporary disability insurance or TDI) has a small negative effect on overall SSDI applications. This finding supports the principle underlying many recent SSDI reform plans: temporary disability insurance coverage could save the SSDI program considerable funds in the long run. Further, when we look to explain variation within a state, we find that state changes in health insurance regulation are negatively correlated with the SSDI application rate. This could be an indication that the Affordable Care Act (ACA) may have spillovers to the SSDI program.

Title
What explains state variation in SSDI application rates?
Author
Coe, Norma B.
Haverstick, Kelly
Munnell, Alicia Haydock
Webb, Anthony
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
working paper
Date Issued
November 2011
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2011-23
Persistent Link
http://hdl.handle.net/2345/bc-ir:104844
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Social Security

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