Disability, Work and Cash Benefits
Jerry L. Mashaw, Yale University, Virginia P. Reno, National
Academy of Social Insurance, Richard V. Burkhauser, Syracuse
University, and Monroe Berkowitz, Rutgers University, Editors.
(The first chapter of this book is available in
PDF
format.)
 
This book examines the economic consequences of work disabilities, and public and private
interventions that might enable disabled individuals to enter the work force for the first time,
remain at work, or return to work. It stems from a conference organized by the Disability Policy
Panel of the National Academy of Social Insurance.
Three groups of papers are presented. The first group examines ways that labor market changes,
policy interventions and individual choices shape the work force. The next analyzes both public
and private return to work policies for the work disabled and for those with a severely disabling
condition. The final group focuses on the specific needs of the disabled that affect their work
force participation, including access to health care, personal assistance and assistive technologies.
Work Disability and the Economic and Policy Environment
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1) The Contemporary Labor Market and the Employment Prospects of Persons with
Disabilities, by Edward Yelin and Miriam Cisternas.
Evidence is presented showing the patterns and extent to which the disabled suffer in labor
market
competition with those without disabilities. Specifically, Yelin and Cisternas find that a disability
tends
to amplify negative effects caused by shocks to the labor market.
2) Employment and Economic Well-Being Following the Onset of a Disability: The Role of
Public
Policy, by Richard V. Burkhauser and Mary C. Daly.
The authors trace the work history of a group experiencing the onset of a work disability, then
analyze their transition out of and back into the labor market. Their results show the importance
of
accommodation and early intervention in preventing long-term disability.
3) Employment and Benefits for People with Diverse Disabilities, by Walter Oi.
Oi
discusses how attributes of the disabling condition, such as the severity and duration of the
disability,
influence whether work is an economically rational outcome for the individual or society as a
whole.
4) European Experience with Disability Policy, by Philip R. DeJong and Leo
J.M.
Aarts.
The authors provide a cross-sectional comparison of the disability policies in four European
nations,
demonstrating the impact of public policy on the incidence of disability benefit receipt.
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Related titles
Safety Practices, Firm Culture, and Workplace Injuries, Richard J. Butler and Yong-Seung Park
Workplace Injuries and Diseases, Karen Roberts, John F. Burton, Jr., and Matthew M. bodah, Editors
Adequacy of Earnings Replacement in Workers' Compensation Programs, H. Allan Hunt, Editor
The Decline in Employment of People with Disabilities, David C. Stapleton and Richard V. Burkahuser, Editors
The Labor Market Experience of Workers with Disabilities: The ADA and Beyond, Julie L. Hotchkiss
Growth in Disability Benefits: Explanations and Policy Implications, Kalman Rupp and David C. Stapleton, Editors
Ensuring Health and Income Security for an Aging Workforce, Peter P. Budetti, Richard V. Burkhauser, Janice M. Gregory, and H. Allan Hunt, Editors
Permanent Disability Benefits in Workers'Compensation, Monroe Berkowitz and John F. Burton, Jr.
Also visit our Disability and Workers' Compensation
Research Hub.
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Return ToWork Policy
5) Patterns of Return to Work and a Cohort of Disabled Worker Beneficiaries, by
Martynas Ycas.
Ycas attempts to profile those on the disability benefit rolls who would be prime candidates for
return to work. He provides evidence that workers over the age of 50 seem poor candidates for
return to work intervention compared with younger workers. He also finds that, when results are
controlled for age, reported health status appears to be the primary determinant of labor market
participation.
6) The Effectiveness of Financial Work Incentives in DI and SSI: Lessons from Other Transfer
Programs, by Hilary W. Hoynes and Robert Moffitt.
By looking at a number of non-disability transfer programs, the authors find that the offsetting
effects
of work incentives designed to lower the marginal tax rate on earnings to existing beneficiaries
make
standard work incentive provisions relatively ineffective in reducing program participation.
7) Lessons from the Vocational Rehabilitation Link for DI Beneficiaries, by Edward
D.
Berkowitz and David H. Dean.
The authors conclude that, due to political and objective factors, there is little evidence to suggest
that existing rehabilitation policy can be or has been effective for the population requiring DI
benefits.
8) Disability and Work: Lessons from the Private Sector, by H. Allan Hunt,
Rochelle V. Habeck, Patricia D. Owens and David Vandergoot.
Through case studies on private sector interventions, the authors show that an aggressive
approach
to managing disability claims has significant payoffs in maintaining employees in their current jobs,
or in transitioning employees to a different job with their current employer.
9) Quantitative Outcomes of the Transitional Employment Training Demonstration, by
Aaron Prero.
Prero analyzes a transitional employment training demonstration program for mentally retarded
adults
sponsored by the Social Security Administration. That project showed a small decline in receipt of
SSI, but the dollar savings from that decline was much less than the costs of the training provided.
However, earnings among the group studied increased, suggesting positive outcomes by measures
other than SSI program savings.
10) The Role of General Employment and Training Programs for Persons with Disabilities,
by Burt Barnow.
Barnow reviews a group of studies designed to improve work outcomes for persons with
disabilities.
He finds very modest effects from any of these interventions, and concludes that there appears to
be
no general strategy for assessing the employment and training needs of that population.
11) Improving the Return to Work of Social Security Disability Beneficiaries, by
Monroe
Berkowitz.
Espousing that radical changes to current disability policy are needed, Berkowitz proposes a
two-stage system in which the SSA's rehabilitation programs are turned over to the private sector.
These
providers would be compensated only if beneficiaries return to work and remain employed.
The Role of Health Care and In-Kind Benefits in Promoting Work
12) People with Disabilities: Access to Health Care and Related Benefits, by Robert
B.
Friedland and Alison Evans.
The authors show that persons with a disability face substantial barriers to obtaining health
insurance
in private markets. This encourages participation in public programs that include relatively
comprehensive health care coverage, either Medicaid or Medicare.
13) Health Care, Personal Assistance and Assistive Technology: Keys to Independence, by
Andrew I. Batavia.
Batavia proposes decoupling in-kind benefits, through cash equivalents, such as vouchers or
refundable tax credits. Thus receipt of such benefits would not be tied to eligibility for income
support, and cash equivalents would be phased out as incomes rose.
"Many chapters offer innovative and undoubtedly controversial policy recommendations,
which, if they are not implemented, are likely to be debated for years to come. Given the current
public debate, (this) is a timely publication that one hopes will be closely read by policy makers. It
should be read by all who are interested in public policy on work disability."
ILR Review
430 pp. 1996
$65 cloth ISBN 0-88099-168-2 / ISBN-13 978-0-88099-168-1
$25 paper ISBN 0-88099-167-4 / ISBN-13 978-0-88099-167-4.
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