Choice under uncertainty: A model of applications for the social security disability insurance program

摘要: Abstract Not all people with health problems are disabled. Some individuals severe physical or mental impairments, such as blindness limb amputation, continue to hold jobs and generally function satisfactorily. They constitute, however, a group of potentially disabled who might apply qualify for Disability Insurance other disability-related benifits if they were lose their decide that employment offered an inadequate financial non-pecuniary reward. Thus, disability, health-related inability work, is more than medical problem but involves motivational attitudinal factors. We specify model the application process, which we choice under uncertainty about approval Insurance. possible outcomes process individual in probability acceptance key consideration. then estimate joint labor supply program based on 1972 survey. compare our results observed time series applications since 1976. Lastly, sensitivity level benifits.