Does Welfare Inhibit Success? The Long-Term Effects of Removing Low-Income Youth from the Disability Rolls
AbstractI estimate the effects of removing low-income youth with disabilities from Supplemental Security Income (SSI) on their earnings and income in adulthood. Using a regression discontinuity design based on a 1996 policy change in age 18 medical reviews, I find that youth who are removed from SSI at age 18 recover one-third of the lost SSI cash income in earnings. SSI youth who are removed and stay off SSI earn on average $4,400 annually, and they lose $76,000 in present discounted observed income over the 16 years following removal relative to those who do not receive a review.
CitationDeshpande, Manasi. 2016. "Does Welfare Inhibit Success? The Long-Term Effects of Removing Low-Income Youth from the Disability Rolls." American Economic Review, 106 (11): 3300-3330. DOI: 10.1257/aer.20151129
- H55 Social Security and Public Pensions
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J14 Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination