Project Management

How Common Is "Parking" Among Social Security Disability Insurance (SSDI) Beneficiaries? Evidence From The 1999 Change In The Level Of Substantial Gainful Activity (SGA)

Date Added: Oct 2010
Format: PDF

Fewer Social Security Disability Insurance (DI) beneficiaries have their earnings suspended or terminated because of work than those who are actually working, partly because beneficiaries "Park" earnings at a level below Substantial Gainful Activity (SGA) to retain benefits. The authors assess the extent of parking by examining how beneficiary earnings and months off the rolls for work responded to a 1999 change in the SGA level for non-blind beneficiaries from $500 to $700 per month. Specifically, the difference-in-difference analysis compares longitudinal data for two beneficiary cohorts with different incentives to park their earnings; one experienced the increased SGA level the first year after its Trial Work Period (TWP), when beneficiaries can earn any amount without losing benefits, while the two-year-earlier cohort did not.