Disability Insurance Incentives and the Retirement Decision: Evidence from the U.S. / Courtney Coile.

Format:

Book

Author/Creator:

Coile, Courtney.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20916.

NBER working paper series no. w20916

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Disability Insurance Incentives and the Retirement Decision

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

A rising share of older workers in the U.S. make use of the Disability Insurance (DI) program in their transition to retirement, with about one in seven men and one in nine women ages 60 to 64 now enrolled in the program. This study explores how financial incentives from Social Security and DI affect retirement decisions, using an option value approach. We find that financial incentives have a significant effect on retirement, particularly for those in poor health or with low education, who may be more actively considering retirement at younger ages. Simulations suggest that increasing the stringency of the screening process for DI would increase the expected working life of DI applicants.

Notes:

Print version record

January 2015.