The Economic Consequences of Disability Evidence from the PSID
The Economic Consequences of Disability Evidence from the PSID
This chapter examines the incidence of disability among working-age men and the impact it has on income and benefit receipt. The results reveal that about 30 percent of men in the United States experience some form of disability and that the economic consequences are similar to those experienced by displaced workers—substantially lower earnings and income. For those who report chronic, severe disabilities, the costs are especially large and are not offset by increased income from other sources. Thus, disability comes with economic costs for the individual that are not offset by either government or family support.
Keywords: disability incidence, earnings, income, public benefits
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