Effects on Beneficiary Employment and Earnings of a Graduated $1-for-$2 Benefit Offset for Social Security Disability Insurance

This study evaluated impacts on employment and earnings levels among people with disabilities of eliminating the cash cliff aspect of Social Security Disability Insurance, in which beneficiaries lose their entire cash benefit when their earnings become too high. Findings demonstrated that an SSDI offset can have a significant effect on the SGA earnings rate of beneficiaries, but that the effect may be limited to a subset of individuals, and may be enhanced when paired with healthcare protection.