Health Care Management Papers
Document Type
Journal Article
Date of this Version
1-1993
Publication Source
Journal of Labor Economics
Volume
11
Issue
1
Start Page
S170
Last Page
S200
DOI
10.1086/298332
Abstract
A review of previous analyses of labor supply effects of Social Security Disability Insurance (DI) concludes that estimates of labor supply effects and net social costs are upward biased because they ignore interactions between DI and other insurances. A model of optimal insurance, postinjury accommodations, and labor supply shows that reduction in labor supply and increase in consumption when disabled do not necessarily imply moral hazard. Optimal postinjury accommodations vary inversely with firm size. The Americans with Disabilities Act will reduce wages and labor supply of healthy workers, particularly in small firms. Effects on labor supply of the disabled are ambiguous.
Recommended Citation
Danzon, P. M. (1993). The Economic Implications of Public Disability Insurance in the United States. Journal of Labor Economics, 11 (1), S170-S200. http://dx.doi.org/10.1086/298332
Included in
Disability Law Commons, Insurance Commons, Other Education Commons, Other Public Health Commons
Date Posted: 27 November 2017