Health and Labor Markets: Exploring Short and Long-term Income Support Programs
Cash assistance for adults with disabilities and paid sick leave for employees with acute illnesses provide income support for individuals when they are unable to work. However, these programs can also create work disincentives resulting in potentially avoidable costs for public payers and employers. In this session, the panelists examine factors that contribute to receipt of long-term income support for disability, and the consequences of short-term income support -- through paid sick leave-- on productivity. In the first paper, the authors assess the relative value of health insurance coverage and cash benefits on participation in the Supplemental Security Income (SSI) program by evaluating the effects of decoupling Medicaid eligibility from SSI eligibility. In the second paper, the authors estimate the effects of labor market conditions over a twenty-year period on participation in the Social Security Disability Insurance program including applications, allowances and denials. The final paper evaluates the effects of paid sick leave on absenteeism.