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Explaining Applications to the U.S. Disability Program: A Semiparametric Approach

Journal of Human Resources (JHR), Winter 2000, 82-115, with Regina Riphahn

This study investigates the determinants of applications for U.S. disability benefits between 1986 and 1993
using a semiparametric discrete factor procedure separately for men and women. Approximating a dynamic
optimization model, the estimation accounts for a variety of potential biases that were unaddressed in prior studies.
Our results indicate different responses of men and women to variations in policy measures. Past labor earnings
and fringe benefits as well as benefit eligibility and benefit amounts clearly affect application behavior.