AltInst: Vocational rehabilitation vouchers

"Reinventing Disability Policy"

      BY: DAVID LEVINE
              University of California at Berkeley, Haas School
              of Business

Document: Available from the SSRN Electronic Paper Collection:
           http://papers.ssrn.com/paper.taf?abstract_id=121381

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Paper ID: UC Berkeley Working Paper No. 65
    Date: April 1998

 Contact: DAVID LEVINE
   Email: Mailto:levine@haas.berkeley.edu
  Postal: University of California at Berkeley, Haas School of
           Business
           #1900
           Berkeley, CA 94720 USA
   Phone: (510)642-1697
     Fax: (510)643-1420

ABSTRACT:
 The disability system in the United States spends approximately
 $120 billion a year to keep millions of working-aged people on
 poverty-level stipends while essentially banning them from
 working. A reinvented system would focus on moving people from
 dependence to independence with flexible vocational
 rehabilitation vouchers, work-oriented assessments, and simple
 rules that guarantee that nobody would ever be made worse off by
 working. A problem with creating a system that combines work and
 partial disability benefits is that it may attract new entrants
 onto the disability rolls. A key insight of this proposal is
 that these generous work incentives can be tested on the current
 six million working-age recipients without inducing entry that
 raises costs.

JEL Classification: J28, J38, J18, J32
______________________________

Robin Hanson
hanson@econ.berkeley.edu http://hanson.berkeley.edu/
RWJF Health Policy Scholar, Sch. of Public Health 510-643-1884
140 Warren Hall, UC Berkeley, CA 94720-7360 FAX: 510-643-8614

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Received on Fri Oct 23 18:52:54 1998