Publications
Publications
Heterogeneous Disability Shocks and the Dynamics of Income, Employment, and Partial Insurance (R&R at the Journal of Health Economics) [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.Early-Onset Disability, Education Investments, and Social Insurance (undergoing revisions) [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.Estimating a Process of Health Formation in Older Adults: The Roles of Physical Functioning, Cognition, and Mental Health. (with Steven Stern) [Draft]
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. (with Steven Stern)
This study examines how disability transfer programs influence the educational attainment of individuals with early-onset disabilities (before age eighteen), contrasting policies directed at children with those targeting adults. Transfers to children with disabilities can offset the costs and barriers associated with their condition, facilitating skill development and encouraging continued education. By contrast, programs for adults provide income support when disability reduces work capacity, but may generate dynamic disincentives that discourage educational investment. To investigate these mechanisms, we develop and estimate a structural life-cycle model of education, individual and family labor supply, and disability policy. The estimated model allows us to quantify the disincentive effects of existing programs and to evaluate reforms designed to improve educational incentives and promote the long-term self-sufficiency of individuals with early-onset disabilities.
The Effect of Worker’s Compensation Claims on Disability Insurance. (With Rory McGee)
This research examines the interactions between Disability Insurance (DI) and Workers' Compensation (WC), two of the main programs designed to assist working-age individuals with disabilities. We seek to understand how these programs interact to partially insure the income of individuals experiencing health-related work limitations. First, we investigate the degree of complementarity between DI and WC and assess disparities in economic outcomes based on WC eligibility. Using a rich panel survey that is merged with administrative income tax filings, we use an two-step instrumental variable strategy to estimate the effect of WC claims on DI receipt. Finally, we will develop an economic model to evaluate the optimality of DI and WC policies and analyze welfare disparities stemming from WC eligibility.
Distortionary Effects of Means-tested Welfare on Durable Consumption and Asset Accumulation. (with Taek Keun Lee)
This research examines the insurance–incentive tradeoff inherent in means-tested welfare policies, focusing on the Supplemental Security Income (SSI) program, which provides cash transfers and Medicaid eligibility to low-income individuals with long-term work-limiting disabilities. While SSI offers crucial support, its income and asset thresholds impose implicit taxes that discourage savings and work, reducing beneficiaries’ ability to self-insure and accumulate human capital, and increasing the risk of program reentry after income shocks. At the same time, exemptions for certain assets—such as a home, one vehicle, and small personal holdings—create relative incentives to channel resources into non-liquid forms of wealth that can serve as imperfect insurance upon exit. By quantifying these incentive costs alongside the program’s essential insurance value, this research seeks to assess the efficiency and equity of SSI and inform policy reforms aimed at reducing distortions while maintaining protection for those most in need.
The Labour Market Consequences of Disability: Types, Severity, Persistence, and Onset (Submitted) [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.