From the Washington Center for Equitable Growth:
The paper, by economists Manasi Deshpande of the University of Chicago and Yue Li of the University at Albany, State University of New York, looks at how the closure of Social Security field offices affects how many people apply for disability programs and the changes in the kinds of people who apply for the program. Using administrative data from the Social Security Administration, the authors can see what happened to SSDI applications and the number of SSDI recipients in ZIP codes closest to the closed offices. ...
What actually happened when the closest Social Security field offices closed and the cost [meaning inconvenience] of applying increased? The number of applications dropped quite a bit, 11 percent after a few quarters, and stayed at that lower level. At the same time, the number of recipients of disability insurance in ZIP codes near the closed field offices dropped 13 percent and also remained low. The fact that the number of recipients dropped more than the number of applicants—the difference is statistically significant—means that the people not applying were more likely to have been accepted if they had applied. Deshpande and Li also find that the field office closings discouraged people with lower education levels and low earnings levels from applying. ...
I don't know about this study. Most disability claims are filed over the telephone which reduces the importance of proximity to a field office. If the "cost" -- basically hassle factor -- of applying goes up and it has generally, I expect those most likely to have been deterred from filing claims are those who suffering from depression. It's a struggle to do anything when you're depressed. I think these authors should have talked with some people involved in the process. Economics explains a lot of things but not everything.
I don't know that most SSI claims are filed by phone. That would tie in with the finding that people with low income and education were most discouraged by closures. They'd have the hardest time using phone minutes to wait on hold or protect a filing date, and the hardest time traveling to a distant office.
ReplyDeleteI think one thing explaining it is those people who have mental issues that make following through with the claim very difficult. It is easier for them to be close where they can get to the office to provide proofs, turn in appeal paperwork, etc.
ReplyDelete@3:33 Exactly. The process is less accessible to people with some common types of disabilities when there are long waits and complex processes involved. I would speculate that economics has little to do with it other than Congress' chronic under-funding of agency operations.
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