Download entire publication - Social Security

Selected Abbreviations—continuedNSCFOASDIRRSIPPSOCSSASSINational Survey of SSI Children andFamiliesOld-Age, Survivors, and DisabilityInsuranceRailroad RetirementSurvey of Income and ProgramParticipationStandard Occupational ClassificationSocial Security AdministrationSupplemental Security Incomebe in worse health, requiring greater expendituresfrom related programs (for example, Medicaid) thanwould have been required had they remained in theSSI program.This article addresses three important questionsregarding the occupations of the disabled. First,how do the occupations of people with disabilities(particularly SSI recipients) compare with theoccupations of people without disabilities? Second,what occupations would the people with disabilities(particularly SSI recipients) have if they did not havea disability? And third, what occupations can weexpect SSI recipients who are not working to have?This study uses the large sample size of the 2007American Community Survey (ACS) to estimate theoccupational distributions of the SSI recipient populationand nonrecipient populations with and withoutdisabilities. These distributions are compared withthe actual and predicted occupational distributions ofthese populations.The next section describes the SSI program andthe work incentives for recipients, followed by reportsof what is known about the occupations and employmentof individuals with disabilities. The data is thendetailed, and a description of the methodology isgiven. What follows are the actual occupational distributionsof employed individuals and the predictedoccupations of nonworking SSI recipients. A discussionof the policy relevance of the results follow, andthe last section concludes the article.The Appendix tables provide detailed informationabout the data and results: Table A-1 lists the occupationcategories used in this study; Table A-2 presentssummary statistics; and Table A-3 shows the multinomiallogit results.SSI ProgramThe SSI program is a means-tested transfer programthat provides income support for individuals who areblind, disabled, or aged. A working-age adult (18–64)is determined to be disabled if he or she has “a medicallydeterminable physical or mental impairment thatis expected to last (or has lasted) at least 12 continuousmonths or to result in death and … prevents him orher from doing any substantial gainful activity” (SSA2008a, 2). The substantial gainful activity amountwas defined as $900 per month in 2007. 1 For children(younger than age 18), there is a functional definitionof disability that does not depend on employment; theaged (65 or older) do not need to have a disability toqualify for SSI.In addition to the disability requirement, an individualmust have low monthly income levels to qualifyfor SSI and no more than $2,000 in resources ($3,000for a couple). The federal government sets the maximummonthly benefit level ($623 for an individual and$934 for a couple in 2007), which is supplemented bysome states. Payments are reduced when an individualreceives earned or unearned income.Although these restrictions on income and assetsmay reduce the likelihood that recipients will work,there are several incentives and supports available tothem should they attempt work. These include allowancesfor impairment-related work expenses, theTicket to Work Program, and special SSI paymentsand Medicaid eligibility for working SSI recipients,known as Sections 1619(a) and (b). 2 Additionally,SSI payments are structured so that the first $65 ofmonthly earnings and an additional $20 of unearnedor earned monthly income are not counted toward anindividual’s income level. After this disregard, thereis a gradual reduction in payments of $1 for everyadditional $2 earned until payments are reduced tozero. As a result, SSI recipients can earn as much as$15,000 per year (depending on their state of residence)and remain eligible for reduced SSI paymentsand the accompanying health insurance access. 3However, these limitations on earnings may also limitthe observable occupations in the SSI community ifcertain occupations typically have earnings greaterthan these thresholds.The number of back-to-work incentives and similardemonstration projects administered and proposed bySSA indicate the interest policymakers have in helpingthese individuals become economically self-sufficient.This study attempts to address a gap in the literature48 Social Security Bulletin • Vol. 69 • No. 3 • 2009