The Benefits to Taxpayers from Increases in Students - RAND ...
The Benefits to Taxpayers from Increases in Students - RAND ...
The Benefits to Taxpayers from Increases in Students - RAND ...
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Social Program Participation and Costs 107<br />
Unemployment Insurance<br />
We estimate <strong>in</strong>come <strong>from</strong> the Unemployment Insurance program us<strong>in</strong>g the two-part<br />
model. <strong>The</strong> first part of the model estimates the likelihood of utiliz<strong>in</strong>g Unemployment<br />
Insurance with probit, and the second part estimates the amount of unemployment<br />
compensation received <strong>in</strong> the year conditional on utilization with OLS. <strong>The</strong> response<br />
variable <strong>in</strong> the <strong>in</strong>come regression is logged compensation for normality. Results are<br />
presented <strong>in</strong> Table C.7.<br />
Social Security<br />
We estimate <strong>in</strong>come <strong>from</strong> the Social Security program us<strong>in</strong>g a two-part model. <strong>The</strong><br />
first part of the model estimates the likelihood of Social Security utilization with<br />
probit, and the second part estimates the amount of Social Security <strong>in</strong>come received<br />
<strong>in</strong> the year conditional on utilization with OLS. <strong>The</strong> response variable <strong>in</strong> the <strong>in</strong>come<br />
regression is the square root of Social Security <strong>in</strong>come for normality.<br />
Further, like SSI, the Social Security program <strong>in</strong>cludes a retirement benefits subprogram<br />
that can kick <strong>in</strong> start<strong>in</strong>g age 62, and survivor and disability <strong>in</strong>surance programs<br />
that might be applicable regardless of age. <strong>The</strong>refore, we modeled program utilization<br />
and <strong>in</strong>come separately for the elderly and non-elderly, us<strong>in</strong>g 62 as the transition<br />
age (the actual age profile of users <strong>in</strong> the SIPP confirms this). Results are presented <strong>in</strong><br />
Table C.8a for utilization and C.8b for <strong>in</strong>come.