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J ohn Bound a nd T i mo t hy W a i dm a nn
A cc o un t i n g f or R e c e n t D e c li n es i n E m p l o y m e n t R a t es
am o n g t h e Wor k i n g -A g e d D i s a b l e d
R e por t No . 00-460
R e s e a r c h R e por t
P O P U L A T I O N S T U D I E S C E N T E R
A T T H E I N S T I T U T E F O R S O C I A L R E S E A R C H
U M P S
C
The Population Studies Center at the University of Michigan is one of the oldest population centers in the United States. Established in 1961 with a grant from the Ford Foundation, the Center has a rich history as the main workplace for an interdisciplinary community of scholars in the field of population studies. Today the Center is supported by a Population Research Center Core Grant from the National Institute of Child Health and Human Development (NICHD) as well as by the University of Michigan, the National Institute on Aging, the Hewlett Foundation, and the Mellon Foundation.
PSC Research Reports are prepublication working papers that report on current demographic research conducted by PSC associates and affiliates. The papers are written by the researcher(s) for timely dissemination of their findings and are often later submitted for publication in scholarly journals. The PSC Research Report Series was begun in 1981 and is organized chronologically. Copyrights are held by the authors. Readers may freely quote from, copy, and distribute this work as long as the copyright holder and PSC are properly acknowledged and the original work is not altered.
PSC Publications Population Studies Center, University of Michigan /pubs/ PO Box 1248, Ann Arbor, MI 48106-1248 USA
Accounting for Recent Declines in Employment Rates among the Working-Aged Disabled
John Bound
Professor of Economics, Department of Economics and Research Associate, Population Studies
Center, the University of Michigan and NBER
and
Timothy Waidmann
Senior Research Associate, The Urban Institute, and Research Affiliate, Population Studies
Center, the University of Michigan
October, 2000
Acknowledgements: We would like to thank Julie Cullen for useful comments on an earlier version of this paper, and N. E. Barr and Mary Claire Toomey for help with preparation of the manuscript.
Abstract
During the 1990s, while overall employment rates for working-aged men and women either remained roughly constant (men) or rose (women), employment rates for the disabled fell. During the same period the fraction of the working-aged population receiving Social Security Disability Insurance (DI) benefits increased quite dramatically. We present simple time series and cross-state evidence suggesting that the growth in the DI program can account for much of the decline in the relative employment position of the disabled.
Data sets used:
Current Population Survey (CPS): U.S., 1989-1998
National Health Interview Survey (NHIS): U.S. 1969-1996