We show that higher payments from U.S. Social Security Disability Insurance (DI) reduce mortality. Using administrative data on all new DI beneficiaries from 1997 to 2009, we exploit discontinuities in the benefit formula through a regression kink design. We estimate that $1,000 in annual DI payments decreases the annual mortality rate of lower-income beneficiaries by 0.1 to 0.2 percentage points, implying that the elasticity of annual mortality with respect to annual DI income is around -0.6. These mortality effects imply large benefits that have not been taken into account in the welfare analysis of DI and other social income insurance programs.
Allow me to simplify the findings into common sense terms: reducing the financial impact of disability reduces the STRESS of disability, which reduces mortality rates. Increasing the backlog and increasing the wait times INCREASES the STRESS, which increases mortality rates. Being denied by an ALJ after nearly 3 years GREATLY INCREASES THE STRESS! It DOESN'T change the fact that you're unable to work. The STRESS DOES make you contemplate things you otherwise wouldn't.
ReplyDeleteSome limited publicity truth for a change. Doubt this will get a story on Fox news, or even and of the corporate "real news" channels, or picked up in any major newspapers.
ReplyDeleteOne tenth of one in a hundred. $1000/year X 14 million people.
ReplyDeleteAm I looking at this right?
I am just trying to wrap my head around "regression kink design."
ReplyDeleteDid anyone think the opposite was true?
ReplyDelete