(Withdrawn) A Framework for Evaluating the Adequacy of Disability Benefit Programs with Application to the U.S. Social Security Disability Programs

Background: The degree to which disability benefit programs provide an adequate standard of living to those with work-limiting disabilities has long been overlooked in social policy research. This paper presents a framework for assessing disability-related decommodification and then applies that framework to an analysis of the Social Security Disability (SSD) programs. The framework identifies two areas of focus that are critical for understanding decommodification performance: the “availability” of benefits to those with work-limiting disabilities, and the “generosity” of benefits demonstrated by the extent to which those on benefits are able to obtain a reasonable standard of living.

Methods: Nationally representative survey data of adults ages 51 to the entitlement age from the Health and Retirement Study are analyzed and linked to administrative records from the Social Security Administration. The analysis further compares the estimates with those from 26 other countries using data from the Survey of Health, Aging, and Retirement in Europe. Four HRS samples are analyzed for the years 1998 (N=7,866), 2004 (N=9,133) , 2010 (N=10,571), and 2016 (N=11,941). A functional ability index was constructed across four time periods using 20 functional related questions to identify work-disability. Inverse probability weights were applied to account for bias of those consenting to share administrative records. A composite measure of financial security is further developed as a proxy measure for the standard of living.

Results: As per the analysis of benefit availability, a first finding concerns the general similarities between the self-reported and administrative data. A second finding concerns the growing share of the population with work-disability receiving disabilities benefits over time – from 32% in 1998 to 47% in 2016, which is consistent with increasing beneficiary rates during this period. A third finding is that more than 50% of those with work-disabilities, people who presumably stand to benefit from these programs, do not receive disability benefits, though rates of benefit receipt for those with work-disabilities are higher than the average across other high-income countries. As per the generosity analysis, OLS regression results indicate that those who receive SSD benefits in the US experience greater difficulty achieving an adequate standard of living. DI recipients score, on average, 1.33 points lower (β = -1.325, p = .000) on the financial security index, while SSI recipients score 1.68 points lower (β = -1.680, p = .000). (β = -1.325, p = .000), relative to those with similar characteristics but who do not receive disability benefits.

Conclusions and Implications: The paper sets forth a framework for future policy research on benefit adequacy, while evaluating the availability and generosity of disability benefits in the US. This framework could assist in the development of cross-national indicators, such as those needed for monitoring CRPD compliance. The application of the framework further revealed the limited availability and generosity of disability benefits in the US, while critical to the social safety net, have not lived up to the promise of providing an adequate standard of living to those with work-disabilities.