The Impact of Temporary Assistance Programs on Disability Rolls and Re-employment

Workers in the United States who lose their job may benefit from temporary assistance programs and may apply for Disability Insurance (DI) and Supplemental Security Income (SSI). We measure whether participation in four temporary assistance programs (Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Unemployment Insurance (UI), and Temporary Disability Insurance programs (TDI)) influence application for DI, SSI, and re-employment. We instrument temporary assistance participation using variation in policies across states and over time. Results from our instrumental variables models suggest that increased access to UI benefits reduces applications for DI. This result is robust to different sensitivity checks. We also find less robust evidence that UI participation increases the probability of return to work and reduces the probability of claiming SSI benefits. In contrast, some of our results suggest a positive effect of SNAP participation on claiming SSI.