Study Shows No Corresponding Spike in Social Security Disability Applications When Unemployment Runs Out
As federal unemployment insurance extensions run out, some lawmakers have expressed concern that the chronically unemployed will turn to Social Security Disability Insurance to cover their costs as they continue to struggle to find a job.
A new study from the Columbia Business School examined past US recession periods and the number of workers on Social Security Disability during those times, and found no statistically significant spike that would suggest the unemployed turn to bilking social programs when unemployment runs out.
“Contrary to the beliefs of many, even in policy circles, our research proves that the unemployed do not directly file for disability following the exhaustion of benefits,” says Columbia Business School Professor Andreas Mueller, who helmed the study. “The evidence is just not there. As a matter of fact, fewer than 2% of workers whose unemployment benefits had expired actually applied for disability insurance.”
Mueller and his colleagues examined around a decade worth of unemployment and Social Security Disability statistics. This is the first time a study has examined the popular fear that the unemployed turn to other, more necessary social programs rather than seek employment. Researchers assumed that workers would file a Social Security Disability application in a time period from three months before benefits ran out, to the day that their benefits ran out.
“While SSDI applications did rise somewhat over the course of the recent recessions, there appears to be no significant increase in SSDI applications in periods where the number of UI exhaustions dropped to zero due to the large UI extensions that were enacted during those times,” said Mueller.
Additionally, data from states that had lengthy unemployment insurance extension periods, there was no statistically significant change in the number of Social Security Disability applications submitted, suggesting that the two statistics have no correlation.
“Although we cannot rule out small effects , the takeaway here is we can conclude that there is no convincing evidence that workers whose unemployment benefits have expired apply for disability insurance on a large scale,” says Mueller. “These findings suggest that the expiration of federal unemployment insurance extensions will not cause additional harm to the financial solvency of the Social Security program and the SSDI trust fund expected to run out by 2016. I hope that these findings will help alleviate certain questions and concerns about the current system and focus the debate on the aspects of reform most needed.”
Proving You Need Social Security Disability Benefits
The standard of disability that must be shown is the same for both programs.
In determining disability, the test is not whether you would be offered a job, but whether there are jobs which you could perform. For those over 55 years old, new regulations allow a more realistic look at age, education, and experience in making this analysis.
For each of the major body systems, Social Security maintains a list of medical conditions that are so severe, being diagnosed with one automatically qualifies you for disability. If your condition is not on the list, Social Security will have to decide if it is of equal severity to a medical condition that is on the list. If it is, you will be found disabled.
The Strom Law Firm Can Help with Social Security Benefits Claim
Applying for Social Security Disability or Retirement Insurance can be complex. However, we understand that you need your benefits and we will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim. Call the attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today. We will be glad to discuss any questions you may have during our free, confidential consultation. Call the experienced attorneys at the Strom Law Firm at (803)252-4800.
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