WSJ On Unemployment And Disability
From the
Wall Street Journal's Economy Stream Blog:
The sharp rise in federal disability rolls in recent years has sparked
worry that able-bodied workers are using the system to hide from the
weak job market. But new research suggests those fears may be overblown. ...
University of California, Berkeley economist Jesse Rothstein
set out to test [that] theory. He reasoned that if the increase [in disability claims] is being
driven by unemployed workers gaming the system, there ought to be a
correlation between expiring jobless benefits rising disability claims.
After all, there’s no need to file for disability insurance — often a
long, involved process — if you can still draw an unemployment check.
When Mr. Rothstein looked at the data, however, he found no such correlation. When the unemployment rate started rising in 2008 and 2009, the
government extended unemployment benefits, leading to a drop in the
number of people exhausting their payments. Yet the number of people
filing for disability kept on rising. In more recent years, the
government has cut back unemployment benefits, leading to an increase in
expirations, but the number of disability applications has remained
flat or even slowed. ...
Federal disability rules allow workers to get benefits only if they
have an “impairment” that prevents them from working. But Mr. Rothstein
notes that the ability to work isn’t necessarily independent of the
labor market.
A construction worker who hurts his back, for example, might be able
to get a desk job during good economic times; when unemployment is high,
however, making such a career switch could be much harder. Moreover,
companies are much more likely to make accommodations for existing
workers who become disabled than to hire a disabled worker — so a person
with a disability who loses a job might well struggle to find a new
one.
Mr. Rothstein says his findings suggest that “really what’s going on
is that there are people who are disabled who may in good markets be
able to get jobs but in difficult market can’t.”
10 comments:
Five or six years ago the news was that so many people were waiting for SSDI and it was an outrage at the time. Now its an outrage that so many people are on SSDI. Now watch the VA Disability in about 5 years it will be an outrage that so many Vet are on disability.
Why would anyone be outraged that a disabled vet is getting benefits? Isn't the outrage now about then NOT getting them?
Yes their is an outrage of Vets not getting their disability, but in 5 or 6 years when they do get it. And FOX and CNBC finds out that the VA is giving out BILLIONS of dollars to Vets they will be outraged on how much money is going to the Vets. You will see.
Sorry, but I haven't run into anyone that's thinks a vet is undeserving of benefits. I'm sure there are done but I just don't see it happening. I guess we will see.
I don't think vets should be able to double dip, getting va disability and ssa disability.
I had a client who was already getting $6000 per month in va benefits in addition to a private long term disability benefits who had the gall to apply for ssa disability claiming he needed it to maintain his previous income levels....
Double dip? The vet paid into both systems, why shouldn't he get benefits from both, provided he meets the different requirements? My "gall" lies with the SSI applicants who have contributed nothing yet express an entitlement that never ceases to amaze me.
1:09...the outrage has to do with why the "disabled" vets are getting disability. I see files of people who served for 5 or less years in the 1970's who are now getting "disability" for reasons like erectile dysfunction or hypertension.
It's hard to figure out how those cause disability and even harder to fathom how they are related to their work as a mechanic 40 years ago.
No one dares to speak up against vets, but their disability system is rife with abuse.
...I stand corrected, outrage abound.
Anon 7:12 The VA has both service connected disability compensation and the misnamed non-service connected VA pension. VA pension is another form of public assistance that targets low income vets who had wartime service, honorable discharges and now are unable to work. Their disabling condition doesn't have to have anything to do with their military service. So it is not abuse to be receiving that since the law was designed for those benefits to be paid. It is like SSI for veterans.
@ 10:25 PM, June 17, 2013
I take it that this was a RSDI, not an SSI only case?
If so, why is it double dipping to receive Social Security disability, as he purchased the insurance through manditory deductions?
Justin
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