The Growth of Applications for Social Security Disability Insurance...

“This article examined the effects of workers’ compensation program changes on the DI application rate during the 1990s. Each state had a workers’ compensation program that provided cash benefits, medical care, and rehabilitation benefits to workers disabled by work-related injuries and diseases. There were no federal standards for workers’ compensation and state rules differed considerably on level of benefits, coverage of employers and employees, and eligibility for benefits. Workers’ compensation was thus very different from DI, for which coverage rules for employers and workers, eligibility requirements, and benefit levels were determined at the national level” (p. 3). (Abstractor: Author)

Full Publication Title: The Growth of Applications for Social Security Disability Insurance: A Spillover Effect From Workers’ Compensation

“Our findings raise potential concerns about the financial status of the DI Trust Fund. Those concerns stem from the assumption that some of the increased application for DI benefits due to changes in workers’ compensation programs during the 1990s resulted in additional DI awards. Although we believe this assumption is reasonable, we have not yet tested the transfer of costs from workers’ compensation to DI. Nevertheless, to the extent that increased application for DI benefits results in more DI awards, the changes in the workers’ compensation program have contributed modestly to the financial problems of the DI Trust Fund. Further concerns involve the potential reduction in incentives to improve workplace safety” (p. 11). (Abstractor: Author)

• Last Updated:
• Created:
• Resource Publication Date: 2012
• Author(s): Guo, Xuguang (Steve); Burton, Jr., John F.
• Organizational Author(s): University of Wisconsin; Rutgers University; Cornell University
• Funding Source: Funding source not identified
• Resource Availability: Publicly available
• Posted by: Wesley Peterson
• Posted in: Workforce System Strategies