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Labor Supply Effects of the Interaction between the Social Security Disability and Retirement Programs at Full Retirement Age (PDF)
University of Michigan Retirement Research Center [MRRC] 
Oct. 23, 2008 Excerpt: The Social Security Disability Insurance (DI) program imposes strong work restrictions on beneficiaries; however, the causal effect of the work disincentives on labor supply has been difficult to estimate. We take a new look at this question by exploiting the fact that DI benefits are payable only until full retirement age (FRA), at which point they are converted to retired worker benefits, and the program's implicit high marginal tax rate on earnings is abruptly relaxed. [Working paper no. 2008-194] MORE >> |
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