The Role of Information in Disability Insurance Application: An Analysis of the Social Security Statement Phase-In

TitleThe Role of Information in Disability Insurance Application: An Analysis of the Social Security Statement Phase-In
Publication TypeJournal Article
Year of Publication2018
AuthorsArmour, P
JournalAmerican Economic Journal: Economic Policy
Volume10
Issue3
Pagination1-41
ISSN Number1945-7731
KeywordsDisabilities, Long-term Care, Social Security, Survey methods
Abstract

This paper exploits a natural experiment in information provision on US Disability Insurance (DI) applications: the Social Security statement. Although the effect of the statement on DI application was negligible in the general health and retirement study population, among those previously reporting a work limitation, biennial DI application rates approximately doubled. This effect was driven by previously uninformed individuals. Additional analyses show these were new applicants and were no less likely to be accepted onto DI, accounting for a substantial fraction of the rise in DI rolls from 1994 to 2004 and indicating the importance of informational frictions in disability policymaking.

URLhttps://pubs.aeaweb.org/doi/10.1257/pol.20160605https://pubs.aeaweb.org/doi/pdf/10.1257/pol.20160605
DOI10.1257/pol.20160605
Short TitleAmerican Economic Journal: Economic Policy
Citation Key9794