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.

Online and Traditional Lectures: Evaluating Effects of Social Presence and Learner Control

Online courses are rapidly replacing traditional, face-to-face lectures in American universities (Allen & Seaman, 2011). As technology improves, this trend will likely continue and accelerate. Researchers must evaluate the impact of online courses compared to their traditional counterparts. This two-part study quantifies the effect of two variables – social presence and learner control – on students’ recall, application and perceived learning levels in different lecture formats. Students in introductory courses at a four-year, public, American university were randomly assigned into three groups to view distinct lecture formats, one in a traditional classroom and two via the Internet. Upon viewing the single lecture, the students were asked to fill out a test and survey to quantify teacher immediacy, recall and application, and perceived learning levels across lecture formats. The study found that different levels of social presence and learner control affected students’ perceived learning levels but did not impact recall or application.