Essays on the Effects of Social Insurance for Disability

This dissertation examines how social insurance, family support and work capacity enhance individuals' economic well-being following significant health and income shocks. I first examine the extent to which the liquidity-enhancing effects of Worker's Compensation (WC) benefits outweigh the moral hazard costs. Analyzing administrative data from Oregon, I estimate a hazard model exploiting variation in the timing and size of a retroactive lump-sum WC payment to decompose the elasticity of claim duration with respect to benefits into the elasticity with respect to an increase in cash on hand, and a decrease in the opportunity cost of missing work. I find that the liquidity effect accounts for 60 to 65 percent of the increase in claim duration among lower-wage workers, but less than half of the increase for higher earners. Using the framework from Chetty (2008), I conclude that the insurance value of WC exceeds the distortionary cost, and increasing the benefit level could increase social welfare. Next, I investigate how government-provided disability insurance (DI) interacts with private transfers to disabled individuals from their grown children. Using the Health and Retirement Study, I estimate a fixed effects, difference in differences regression to compare transfers between DI recipients and two control groups: rejected applicants and a reweighted sample of disabled non-applicants. I find that DI reduces the probability of receiving a transfer by no more than 3 percentage points, or 10 percent. Additional analysis reveals that DI could increase the probability of receiving a transfer in cases where children had limited prior information about the disability, suggesting that DI could send a welfare-improving information signal. Finally, Zachary Morris and I examine how a functional assessment could complement medical evaluations in determining eligibility for disability benefits and in targeting return to work interventions. We analyze claimants' self-reported functional capacity in a survey of current DI beneficiaries to estimate the share of disability claimants able to do work-related activity. We estimate that 13 percent of current DI beneficiaries are capable of work-related activity. Furthermore, other characteristics of these higher-functioning beneficiaries are positively correlated with employment, making them an appropriate target for return to work interventions.

THE RELATIVE SIGNIFICANCE OF SYNTACTIC KNOWLEDGE AND VOCABULARY KNOWLEDGE IN SECOND LANGUAGE LISTENING COMPREHENSION

The main purpose of the current study was to examine the role of vocabulary knowledge (VK) and syntactic knowledge (SK) in L2 listening comprehension, as well as their relative significance. Unlike previous studies, the current project employed assessment tasks to measure aural and proceduralized VK and SK. In terms of VK, to avoid under-representing the construct, measures of both breadth (VB) and depth (VD) were included. Additionally, the current study examined the role of VK and SK by accounting for individual differences in two important cognitive factors in L2 listening: metacognitive knowledge (MK) and working memory (WM). Also, to explore the role of VK and SK more fully, the current study accounted for the negative impact of anxiety on WM and L2 listening. The study was carried out in an English as a Foreign Language (EFL) context, and participants were 263 Iranian learners at a wide range of English proficiency from lower-intermediate to advanced. Participants took a battery of ten linguistic, cognitive and affective measures. Then, the collected data were subjected to several preliminary analyses, but structural equation modeling (SEM) was then used as the primary analysis method to answer the study research questions. Results of the preliminary analyses revealed that MK and WM were significant predictors of L2 listening ability; thus, they were kept in the main SEM analyses. The significant role of WM was only observed when the negative effect of anxiety on WM was accounted for. Preliminary analyses also showed that VB and VD were not distinct measures of VK. However, the results also showed that if VB and VD were considered separate, VD was a better predictor of L2 listening success. The main analyses of the current study revealed a significant role for both VK and SK in explaining success in L2 listening comprehension, which differs from findings from previous empirical studies. However, SEM analysis did not reveal a statistically significant difference in terms of the predictive power of the two linguistic factors. Descriptive results of the SEM analysis, along with results from regression analysis, indicated to a more significant role for VK.