Publications
Publications
Early-Onset Disability, Education Investments, and Social Insurance (submitted) [Draft ] [Appendix]
Abstract: This paper examines the impact of labour market social insurance policies on pre-market human capital investments, focusing on the post-secondary education gap between individuals with early-onset disabilities (occurring by age 19) and their non-disabled peers. Using a dynamic life-cycle model estimated with Canadian survey and tax data, I decompose the education gap, highlighting that policy-induced disincentives significantly reduce education rates for individuals with early-onset disabilities. Policy experiments show that reducing the generosity of social insurance lowers education disincentives and government costs but harms the welfare of individuals with early-onset disabilities. Alternatively, targeted consumption subsidies during post-secondary encourage investments and reduce government expenses without compromising welfare.Heterogeneous Disability Shocks and the Dynamics of Income, Employment, and Partial Insurance (submitted) [Draft] [Appendix]
Abstract: This study examines the longitudinal effects of disability, distinguishing disability types by the activities they impair. Using linked Canadian survey and tax data, I estimate impacts on personal income components over ten years and identify gaps in partial insurance across types. Mental-cognitive disabilities cause larger, more persistent market income losses than physical disabilities. Although the tax-transfer system provides partial income insurance, its effectiveness varies, with minimal support for mental health-related disabilities. A welfare analysis reveals that disability benefits are suboptimal for several types, especially mental health-related conditions, underscoring the need for improved policy targeting.Estimating a Process of Health Formation in Older Adults: The Roles of Physical Functioning, Cognition, and Mental Health. (draft soon!) (with Steven Stern).
Abstract: In this paper, we develop a model to examine the dynamic process of health formation in older adults. Health is modeled as a vector of latent components, each evolving according to a transition process that captures dynamic complementarities among components and the influence of external factors, such as health investments and economic conditions. Considering an application which specifies health components related to physical functioning, cognitive functioning, and mental health, we estimate the transition process using a comprehensive set of health measures from the Health and Retirement Study. Preliminary results indicate positive dynamic complementarities across health components. Physical functioning emerges as the most persistent component and a sizable determinant of mental health. As for outcomes, cognitive functioning is associated with the highest medical expenses in retirement.Educational Investments, Family Resources, and the Dynamic Disincentive of Social Security. (draft soon!) (with Steven Stern).
The Effect of Worker’s Compensation Claims on Disability Insurance. (With Rory McGee)
Distortionary Effects of Means-tested Welfare on Durable Consumption and Asset Accumulation. (with Taek Keun Lee)
The Labour Market Consequences of Disability: Types, Severity, Persistence, and Onset [Link]
Abstract: This paper analyzes the vast variation in labor market outcomes across disabilities by representing disability as a bundle of characteristics. Rich with information on the characteristics of a disabling condition, I use the Participation and Activity Limitation Survey to compare the relative importance of each characteristic and their interactions on employment, wages, hours worked, and annual employment income. The set of disability characteristics includes the type of activity limitation, number of limitations, timing of onset, severity, and duration. I find substantial cross-sectional variation in labor supply, wages, and annual earnings across the activity limitations. Severity is most predictive of labor supply, while persistence, given by the duration of disability, is predictive of all outcomes. Cognitive types of disabilities have more impact on wages than physical. Lastly, I find the timing of onset has important implications for wages and annual income. My results are consistent with disabilities that onset by age eighteen inflicting additional wage penalties through reduced skill accumulation.