Unemployed workers participate in various temporary assistance programs. They are also more likely to apply for Disability Insurance (DI) and Supplemental Security Income (SSI), growing programs with large costs. Temporary benefits can both increase and decrease probabilities of re-employment and application for DI/SSI. When controlling for selection bias, we find evidence that increased access to unemployment benefits reduces applications for DI, while increased access to food benefits increases applications for SSI. These results suggest that applications for DI/SSI are sensitive to participation in temporary assistance programs, and that increased access to unemployment is less costly than it may appear.
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