This paper measures the causal effect of time out of the labor force on subsequent employment of Social Security Disability Insurance (SSDI) applicants and distinguishes it from the discouragement effect of receiving disability benefits. Using a unique Social Security Administration workload...

The authors present the first causal estimates of the effect of Social Security Disability Insurance benefit receipt on labor supply using all program applicants. They use new administrative data to match applications to disability examiners, and exploit variation in examiners' allowance rates...