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Key Findings Details

Economic Conditions and SSI Applications
Austin Nichols, Lucie Schmidt and Purvi Sevak
WP 2014-318

· This study examines the relationship between economic conditions, state policy variables, and SSI applications between 1996 and 2010.

· Our results suggest the net benefits of federal aid during downturns may be underestimated.

· If federal interventions, such as the American Recovery and Reinvestment Act (ARRA) in 2009, result in reduced state unemployment rates, either by averting the laying off of state workers or by stimulating demand, or if they relieve state fiscal distress, the recession- induced increase in SSI and SSDI applications could be dampened.

· Future research should examine the extent to which federal aid such as ARRA or extended unemployment benefits impact application risk.

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