Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Lam looks at population and development in next 15 years in UN commission keynote address

Mitchell et al. find harsh family environments may magnify disadvantage via impact on 'genetic architecture'

Frey says Arizona's political paradoxes explained in part by demography

Highlights

NIH announces new policy for resubmissions (4/17/14)

2014 PAA Annual Meeting, May 1-3, Boston

PSC newsletter spring 2014 issue now available

Raghunathan appointed director of Survey Research Center

Next Brown Bag


PSC Brown Bags will return in the fall

John Bound photo

The Welfare Implications of Increasing Disability Insurance Benefit Generosity

Publication Abstract

Bound, John, Julianne Cullen, Austin Nichols, and Lucie G. Schmidt. 2004. "The Welfare Implications of Increasing Disability Insurance Benefit Generosity." Journal of Public Economics, 88(12): 2487-2514.

In order to evaluate whether workers are over- or under-insured through the Disability Insurance (DI) program, we develop a framework that allows us to simulate the benefits as well as the costs associated with marginal changes in payment generosity from a representative cross-sectional sample of the population. Under the assumption that individuals are reasonably risk averse, we find that the typical worker would value increased benefits somewhat above the average costs of providing them. However, whether the benefit increases tend to lower or raise utility when we average across all individuals in our sample is sensitive to assumptions that affect the relative marginal utility of income to disabled individuals. (C) 2003 Elsevier B.V. All rights reserved.

DOI:10.1016/j.jpubeco.2003.07.007 (Full Text)

Public Access Link

Browse | Search : All Pubs | Next