The Effect of Disability Insurance Payments on Beneficiaries' Earnings

摘要

Disability insurance protects workers against unfavorable health shocks that make it difficult or impossible to work, but it can also affect work incentives among those who, while disabled, may still be able to participate in the labor market. Some beneficiaries may reduce their work effort either as a result of program rules that limit their labor market activities, or because the income they receive from disability insurance reduces their need for earned income.