Employers and Disability Insurance: Evidence from Individual Tax Returns

Citation:

Lurie, Ithai, Nicole Maestas, Corbin Miller, and Daniel Prinz. Working Paper. “Employers and Disability Insurance: Evidence from Individual Tax Returns”.
Paper3 MB

Abstract:

We merge the universe of 2000-2018 W-2 earnings records to the universe of 2000-2018 SSA-1099 forms to estimate the Social Security Disability Insurance (SSDI) claiming rate of each employer's employees. We document large variation across industries in claiming rates. We also show that SSDI claiming rates correlate with characteristics of firms that signal firm quality. There is a positive association between firm size and employee SSDI claiming, except for the largest firms, which have lower employee claiming rates. In addition, we document a negative association between employee wages and SSDI claiming. In future work, we will estimate the relationship between employer and employee wage premiums and SSDI claiming.

Last updated on 09/25/2020