Welcome!

News Feed Item

Study Reveals New Insight About Social Security Disability Benefits Amid Agency's Influx Of Problems

Columbia Business School economist looks into the possibility of unemployed workers tapping the disability fund when running out of unemployment benefits.

NEW YORK, Feb. 10, 2014 /PRNewswire/ -- With millions of Americans' unemployment benefits expiring, and as the Social Security Administration comes under increasing pressure to reform its financially-troubled entitlement program, policymakers are asking whether a significant amount of Americans are bilking disability benefits from federal coffers. A new study from Columbia Business School sheds light on the answer.

(Logo: http://photos.prnewswire.com/prnh/20120905/NY68578LOGO )
(Photo: http://photos.prnewswire.com/prnh/20140210/NY62001-a )

The research, titled "Unemployment Insurance and Disability Insurance in the Great Recession," refutes the idea that the jobless and uninsured flock to disability benefits when their unemployment benefits expire.  

"Contrary to the beliefs of many, even in policy circles, our research proves that the unemployed do not directly file for disability following the exhaustion of benefits," says Columbia Business School Professor Andreas Mueller, who helmed the study.  "The evidence is just not there. As a matter of fact, fewer than 2% of workers whose unemployment benefits had expired actually applied for disability insurance."

The study was co-conducted by University of California, Berkeley Professor Jesse Rothstein, and University of California, Los Angeles Professor Tim M. von Wachter

The Research 

Until now, little research has been conducted regarding the degree to which Social Security Disability Insurance (SSDI) is used by workers who exhaust their unemployment benefits. There have been concerns for years by the public and in policy circles that the explosion of SSDI is due to these displaced workers.  

Mueller and his colleagues looked at nearly a decade worth of data to determine whether there was a significant drop or rise in disability insurance applications during periods of widespread variability in unemployment extensions.

The data includes sources that are being used for the first time to investigate the relationship between unemployment insurance exhaustion and disability insurance applications. Through statistics gathered from the Social Security Administration, the researchers analyzed applications to disability insurance and their award rates, and how that information relates to the number of people exhausting unemployment insurance benefits. The researchers assumed that workers would apply for disability either three months prior or following the exhaustion of benefits.

Unemployment Insurance Exhaustions and SSDI applications by month, 2004-2012

(Photo: http://photos.prnewswire.com/prnh/20140210/NY62001-b )

"While SSDI applications did rise somewhat over the course of the recent recessions, there appears to be no significant increase in SSDI applications in periods where the number of UI exhaustions dropped to zero due to the large UI extensions that were enacted during those times," said Mueller.

The Results

The research reveals that expiring unemployment insurance does not cause a spike in SSDI.  In fact, all of the analyses show a 2% or smaller correlation between the number of workers whose unemployment benefits had been exhausted and the number of those who applied for disability insurance. Even in states that had a lengthy unemployment extension period, Mueller and his co-authors did not observe a significant drop in disability insurance applications.

"Although we cannot rule out small effects , the takeaway here is we can conclude that there is no convincing evidence that workers whose unemployment benefits have expired apply for disability insurance on a large scale," says Mueller. "These findings suggest that the expiration of federal unemployment insurance extensions will not cause additional harm to the financial solvency of the Social Security program and the SSDI trust fund expected to run out by 2016. I hope that these findings will help alleviate certain questions and concerns about the current system and focus the debate on the aspects of reform most needed."

To learn more about the cutting–edge research being performed by Columbia Business School faculty members, please visit www.gsb.columbia.edu.

About Columbia Business School 
Columbia Business School is the only world–class, Ivy League business school that delivers a learning experience where academic excellence meets with real–time exposure to the pulse of global business. Led by Dean Glenn Hubbard, the School's transformative curriculum bridges academic theory with unparalleled exposure to real–world business practice, equipping students with an entrepreneurial mindset that allows them to recognize, capture, and create opportunity in any business environment. The thought leadership of the School's faculty and staff, combined with the accomplishments of its distinguished alumni and position in the center of global business, means that the School's efforts have an immediate, measurable impact on the forces shaping business every day. To learn more about Columbia Business School's position at the very center of business, please visit www.gsb.columbia.edu.

SOURCE Columbia Business School

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...