Studies Explore Underlying Issues in Disability Program
The chronic medical conditions and musculoskeletal problems that afflict workers of all ages have far-reaching effects on the labor market and the federal disability program that economists are trying to understand. The following three studies focus in on specific aspects of the workers who apply for disability benefits.
“Workplace Injuries and Receipt of Benefits from Workers Compensation and SSDI”:
In most states, Social Security disability benefits are supposed to be reduced if the benefits, when added to private workers’ compensation payments, exceed 80 percent of the injured worker’s current earnings. The researchers, by combining Social Security data with workers’ comp payments for people with permanent workplace injuries, find that the share of Social Security recipients whose monthly payments are being offset – about a third – is “surprisingly low.” This seems to confirm their hypothesis that it may be difficult for Social Security to get accurate information about the workers’ comp offsets.
“Employment Outcomes for SSDI Applicants Who Use Opioids”:
Opioid users applying for Social Security disability benefits are less likely than applicants who don’t use opioids to be working during the four years after submitting an application, according to a Mathematica study. A look inside the pool of applicants shows, however, that people using opioids who’ve been denied benefits and lack the government income to fall back on have higher employment rates than the opioid users who end up receiving the benefits.
But opioid use isn’t good for anyone’s work life, whether they have a disability or not. Opioids’ impact on applicants’ employment “is similar in magnitude to the broader population,” the researchers found. They argue that opioids may be more of a concern in the disability population because their opioid use is more widespread: 30 percent of disability applicants take opioids – a rate that is 50 percent higher than in the U.S. population.
“Changes in New Disability Awards: Understanding Trends and Looking Ahead”:
The number of people being awarded disability benefits has been dropping for more than a decade. But this wasn’t always the case. A new study looking back at earlier generations finds that the share of Americans receiving the benefits before hitting their mid-60s increased from 12 percent of the generation born in the late Depression years to 20 percent of the earliest baby boomers. This was partly due to the boomers’ increased incidence of back pain, heart disease, obesity, and falling marriage rates, which can worsen health, the researcher finds. The trend was particularly strong in the Black community, with the share of disability recipients rising from 18 percent of the Depression generation to 28 percent of early boomers.
The research studies reported herein were derived in whole or in part from research activities performed pursuant to a grant from the U.S. Social Security Administration (SSA) funded as part of the Retirement and Disability Research Consortium. The opinions and conclusions expressed are solely those of the authors and do not represent the opinions or policy of SSA, any agency of the federal government, or Boston College. Neither the United States Government nor any agency thereof, nor any of their employees, make any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of the contents of this report. Reference herein to any specific commercial product, process or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply endorsement, recommendation or favoring by the United States Government or any agency thereof.
