PeakTrader.com

[administrator]

DWB:

What I puzzle over is this graph: http://macroblog.typepad.com/macroblog/2014/05/how-has-disability-affected-labor-force-participation.html

The percentage of people claiming disability has climbed uniformly across all groups since 1998.

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PeakTrader:

According to the chart in the link below, applications for disability benefits rise and fall with the unemployment rate. So, for example, in 1995-00, when actual output exceeded potential output and the country was beyond full employment, applications for disability benefits fell.

However, it should be noted, the Baby-Boomers, born between 1946-64, were at their peak productive years in 1995-00, i.e. at prime-age, or 35-54, and the group increasingly moved beyond its prime after 2000.

Also, it’s possible, it has become easier to qualify for disability benefits in many states.

http://apps.npr.org/unfit-for-work/

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DWB:

Eyeballing the macroblog chart, it is a uniform increase since 1998. Years when unemployment was low, like 98 and 2006, are not better (lower rate) than 2001.

Keep in mind, the macroblog chart is people reporting disability as a reason for non participation in the labor force, not people actually making SSI disability claims (or other private disability benefits claims). The graphs in that link are not apples-to-apples. They are not normalized by population or shown by cohort (esp in the 45-60 age brackets) as they are in the macroblog chart. If the SS admin released those numbers, it would be interesting.

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PeakTrader:

The article says “disability or illness is cited (for labor force nonparticipation) most often among people 51 to 65 years old.”

Perhaps, “retired” increasingly replaces “disability or illness” after the mid-50s?

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