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Published in: Demography 6/2017

03-10-2017

Work Disability Among Native-born and Foreign-born Americans: On Origins, Health, and Social Safety Nets

Authors: Michal Engelman, Bert M. Kestenbaum, Megan L. Zuelsdorff, Neil K. Mehta, Diane S. Lauderdale

Published in: Demography | Issue 6/2017

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Abstract

Public debates about both immigration policy and social safety net programs are increasingly contentious. However, little research has explored differences in health within America’s diverse population of foreign-born workers, and the effect of these workers on public benefit programs is not well understood. We investigate differences in work disability by nativity and origins and describe the mix of health problems associated with receiving Social Security Disability Insurance benefits. Our analysis draws on two large national data sources—the American Community Survey and comprehensive administrative records from the Social Security Administration—to determine the prevalence and incidence of work disability between 2001 and 2010. In sharp contrast to prior research, we find that foreign-born adults are substantially less likely than native-born Americans to report work disability, to be insured for work disability benefits, and to apply for those benefits. Overall and across origins, the foreign-born also have a lower incidence of disability benefit award. Persons from Africa, Northern Europe, Canada, and parts of Asia have the lowest work disability benefit prevalence rates among the foreign-born; persons from Southern Europe, Western Europe, the former Soviet Union, and the Caribbean have the highest rates.

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Appendix
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Footnotes
1
Social Security Disability Insurance (SSDI) is an earned benefit program for workers. It is distinct from the Supplemental Security Income (SSI) program, which pays benefits to individuals of very limited income and assets who are disabled, blind, or aged 65 and older. Unlike their SSDI counterparts, SSI benefits are not tied to a person’s work record. Our analysis focuses solely on eligibility and receipt of SSDI benefits.
 
2
This mistake was made particularly often in the nonresponse follow-up, done by phone or in person. Many of the persons in the follow-up who responded affirmatively to the work disability question also reported that they were working, which led the bureau to realize that the disability question was being misunderstood (Stern 2003).
 
3
The SSDI program operates in the territories, and thus the majority of persons in the SSA database who were born in the territories still reside in the territories. On the other hand, persons born in the territories are included in the ACS only if they currently reside in one of the 50 states or the District of Columbia.
 
4
Details on program eligibility can be found at the Social Security Administration website (https://​www.​ssa.​gov/​planners/​credits.​html#&​a0=​2).
 
5
The 1996 Welfare Reform Act affected the eligibility of foreign-born individuals for many public assistance programs but not the SSDI program. Although the act barred illegal aliens from receiving SSDI benefits, the same individuals were also not eligible to obtain a SSN for work and thus would not be included in the data sets used in this analysis unless they obtained or used a number fraudulently.
 
6
See the 2015 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, available online (https://​www.​ssa.​gov/​oact/​tr/​2015/​tr2015.​pdf).
 
7
We use the term “ratio,” rather than “rate,” because technical denials include people who lack a qualifying work history and are thus not a true subset of the insured population.
 
8
Our population total rates are consistent with the annual rates reported by the SSA (https://​www.​ssa.​gov/​policy/​docs/​statcomps/​di_​asr/​2011/​sect04.​html).
 
9
Totalization agreements are international social security treaties between the United States and other countries that eliminate dual Social Security taxation and provide benefit protection for workers who have divided their careers between the United States and another country. The United States has totalization agreements with Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, South Korea, Spain, Sweden, Switzerland, and the United Kingdom (42 U.S.C. § 433).
 
10
Sensitivity analyses exploring alternative specifications of the age variable showed little to no effect on the origin coefficients or their statistical significance, although under one specification, the odds ratio for men born in the former Soviet Union increased from 1.10 to 1.14 and became statistically significant (results available upon request).
 
11
The decade of arrival may have historical significance in addition to being a marker for the duration of time immigrants have spent in the United States, but the two effects cannot be disentangled.
 
12
The ACS sample includes all working-age adults, while the SSA sample is limited to those who are disability insured.
 
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Metadata
Title
Work Disability Among Native-born and Foreign-born Americans: On Origins, Health, and Social Safety Nets
Authors
Michal Engelman
Bert M. Kestenbaum
Megan L. Zuelsdorff
Neil K. Mehta
Diane S. Lauderdale
Publication date
03-10-2017
Publisher
Springer US
Published in
Demography / Issue 6/2017
Print ISSN: 0070-3370
Electronic ISSN: 1533-7790
DOI
https://doi.org/10.1007/s13524-017-0617-8

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