Does Welfare Inhibit Success? The Long-Term Effects of Removing Low-Income Youth from the Disability Rolls | Zendy

Manasi Deshpande | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Does Welfare Inhibit Success? The Long-Term Effects of Removing Low-Income Youth from the Disability Rolls

Author(s) -

Manasi Deshpande

Publication year - 2016

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/aer.20151129

Subject(s) - earnings , regression discontinuity design , economics , welfare , demographic economics , low income , cash , labour economics , medicine , finance , market economy , pathology

I estimate the effects of removing low-income youth with disabilities from Supplemental Security Income (SSI) on their earnings and income in adulthood. Using a regression discontinuity design based on a 1996 policy change in age 18 medical reviews, I find that youth who are removed from SSI at age 18 recover one-third of the lost SSI cash income in earnings. SSI youth who are removed and stay off SSI earn on average $4,400 annually, and they lose $76,000 in present discounted observed income over the 16 years following removal relative to those who do not receive a review. (JEL I30, I38, J14)

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research