What Explains Variation in Disability Application Rates Across States?

Norma B. CoeKelly HaverstickAlicia H. Munnell Anthony Webb

IB#12-1

The brief’s key findings are:

  • Application rates for federal Disability Insurance (DI) vary greatly by state, which has raised concerns that states apply standards inconsistently.
  • However, the main factors driving the variation are health, demographic, and employment characteristics.
  • Interestingly, states that require employers to provide temporary disability insurance have lower DI application rates.