The Effect of Cutting Disability Insurance Benefits on Labor Supply in Households

摘要: Previous empirical literature has shown a substantial extent of work disincentives in the Disability Insurance (DI). While its focus been on inflow into DI and increases benefits, this study focuses partial benefit cut existing beneficiaries. The reduction affected married beneficiaries only was also dependent their entry DI. richness dataset allows me to look at behavioral response labor market participation from spouse not beneficiary. Using difference-in-differences methodology, I find no effect supply or earnings for both members couple. If anything, there might be spillover effects means-tested social insurance. These results indicate partially cutting benefits is an effective policy increase