Sep 18, 2010

Does This Mean Anything?



This is from the National Academy of Social Insurance (NASI). I would not jump to the conclusion that there is a connection between these two lines. In fact, I think there probably is no connection but it is an interesting chart.

2 comments:

Norman James said...

A factor of 2 increase in DIB payments that mirrors a factor of 2 decrease in WC payments does tend to indicate a correlation, though evidence for causation is not yet clear. However, the analysis below the graph in the NASI paper hints at causation:
"A recent study by Guo and Burton (2008) provides the first empirical evidence that retrenchment in workers' compensation in the 1990s helps explain the increase in Social Security disability insurance applications during the period."

Anonymous said...

A recession means fewer wrokers so there would be fewer inuries. It also means peolpe who were working with disabling conditions now need the benefits that they were foregoing previously?