The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust | Zendy

Dan A. Black | Zendy; Kermit Daniel | Zendy; Seth Sanders | Zendy

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The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust

Author(s) -

Dan A. Black,

Kermit Daniel,

Seth Sanders

Publication year - 2002

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/000282802760015595

Subject(s) - bust , disability insurance , earnings , economics , boom , social security , survey of income and program participation , economic impact analysis , labour economics , coal , payment , microeconomics , finance , engineering , environmental engineering , market economy , waste management

We examine the impact of the coal boom of the 1970's and the coal bust of the 1980's on disability program participation. These shocks provide clear evidence that as the value of labor-market participation increases, disability program participation falls. For the Disability Insurance program, the elasticity of payments with respect to local earnings is between -0.3 and -0.4 and for Supplemental Security Income the elasticity is between -0.4 and -0.7. Consistent with a model where qualifying for disability programs is costly, the relationship between economic conditions and program participation is much stronger for permanent than for transitory economic shocks.

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