Public Policy & Labor Market Outcomes
Sunday, Jan. 3, 2021 10:00 AM - 12:00 PM (EST)
- Chair: Melissa S. Kearney, University of Maryland
Access to Disability Insurance and the Pace of Economic Recovery
AbstractIt is well-documented that during economic downturns, applications to Social Security Disability Insurance (SSDI) increase. This paper investigates whether easier access to SSDI benefits results in lower employment growth after the economy recovers. We compare neighboring zip codes that straddle SSA hearing office catchment borders and find that places with more burdensome appeal processes saw a smaller increase in SSDI enrollment following the Great Recession, resulting in lower SSDI participation and more rapid employment recovery. This finding highlights the interaction of supply and demand side factors in determining employment outcomes and aggregate recovery rates.
Wage Insurance and Labor Market Trajectories
AbstractWage insurance provides income support to displaced workers who find reemployment at a lower wage. We study the effects of the wage insurance provisions of the U.S. Trade Adjustment Assistance (TAA) program using administrative data from the state of Virginia. The program includes an age-based eligibility cutoff, allowing us to compare earnings and employment trajectories for workers whose ages at the time of displacement make them eligible or ineligible for the program. Our findings suggest that wage insurance eligibility increases short-run employment probabilities and that wage insurance and TAA training may yield similar long-run effects on employment and earnings.
Working for Your Bread: The Labor Supply Effects of Food Assistance Programs
AbstractSNAP is the largest universal safety program in the US, providing electronic benefits that can be redeemed for food. The SNAP Programs is designed to alleviate hunger and malnutrition while not discouraging work activities. We add to a growing literature exploring the consequences of in kind programs for labor supply by providing the first evidence on whether SNAP eligibility and benefits formulas distort labor supply along the intensive margin. Specifically, we test whether SNAP recipients adjust labor supply to maximize SNAP benefits or to pass SNAP maximum income tests. To do so, we combine novel administrative SNAP records for 24 states matched with the Detailed Earnings Records from the Social Security Administration.
- J2 - Demand and Supply of Labor