How Does the Composition of Disability Insurance Applicants Change Across Business Cycles?

Much as in previous recessions, the number of applications to public disability insurance programs increased sharply during the Great Recession. We find that the composition of applicants also changes across business cycles. For example, applicants during economic downturns, and especially during the Great Recession, are younger, better educated, higher income, and more likely to have recent work experience. However, we find only mixed evidence supporting the theory that the increase in applications in downturns is caused by healthier applicants who apply to disability programs only because they are unemployed.

Reference Information

Author: 

Norma B. Coe,
Matthew S. Rutledge
Publisher: 
Stanford Center on Poverty and Inequality
Publication Date: 
November 2012