Disabled Old-Age Inwrance Beneficiaries by EDNA C. WENTWORTH *

ETWEEN two-thirds and three- tion of beneficiaries who are disabled they had during the year preceding fourths of the men and women depends on the definition used. For the interview were noted. B currently receiving old-age in- the present estimate a beneficiary In the analysis of the data collected, surance benefits are estimated to be was counted as disabled if he was the beneficiaries were first grouped disabled. Most of these disabled incapable of full-time work at the in three classes according to their beneficiaries have quit working for kind of job he had before his entitle- opinions as to their work capacity good. Some of them, however, can ment. The estimate is based on a at the time of the interview. The and do work after their entitlement study of representative beneficiaries postentitlement employment record in jobs that are less demanding than in 20 cities. Altogether, 3,362 men of the beneficiaries in each class and their usual occupations. Others un- and 622 women who became entitled the present condition of their health doubtedly could work if jobs geared to primary benefits during the 8 years were then studied.3 to their limited capacities were 1940-47 were intervieyed in their available. homes in the period from 1941 to Beneficiaries’ Work Capacity This estimate of the extent of dis- 1949 to find out how they were getting The following classification was ability among all retirement bene- along after their entitlement.z Among used in grouping the beneficiaries ficiaries in the United States relates other things they were asked their with reference to their opinion as to to the present period of relatively full opinions about their health and their their work capacity: (1) those who emp1oyment.l In a labor market less ability to work at the time of the said they could work full time-35 favorable to the employment of old interview. The infirmities of which hours or more a week-on a job for people, the disability rate would be they complained and any employment which their experience qualified lower than the estimate indicates them; (2) those who regarded them- because more able-bodied persons 2For reports on some of the findings selves as unable to work at all; (3) aged 65 and over would be out of work of these surveys, see the Bulletin for those who said they were able to work July and September 1943: ; and receiving insurance benefits. January, April, September, and November but specified that the job must be The concept of disability obviously 1945; ; August and October “light” or “part time” (table 1). All is relative, and the estimated propor- 1947; February and ; three classes included some bene- November 1949; April and ; and ficiaries whose benefits were sus- * Division of Program Analysis, Bureau January 1951. See also the Bulletin for of Old-Age and Survivors Insurance. for a comparison of aged in- pended a month or more during the 1 The estimate relates to beneficiaries surance beneficiaries with aged assistance survey year 4 because,of their covered currently receiving benefits 1 to 11 years recipients and the aged in the general employment earnings. after their entitlement; for estimates population, and the issue relating to the employability of bene- for a study of public assistance supple- ficiaries at the time of their entitlement, mentation of income of insurance bene- Able to work full time.-Most of see the Bulletin for January 1951. ficiaries. the beneficiaries who said they could work full time in their customary occupations if they had the oppor- Table l.-Percentage distribution of old-age beneficiaries by their opinion as to their ability to work,1 20 cities, 1941-49 tunity were probably able to do so. - During the wartime year ending in 7- i Pcrccntage distribution the summer of 1944, for example, 89 - -__ - - percent of all the men beneficiaries Year of I Vumber Survey area entitle- in Able to I ncapaci.. ’ 4ble to interviewed in Ohio who had no res- ment s3mplt? work t ated for w ork only ervations as to their work capacity Total full any kind Part tim t or at did have some employment. Two- time of work li ght jobs - .- _- Men: 3 The analysis of health and employ- Philadelphia-Baltimore- ___. ___. 1940 1941 508 ment is limited to the men beneficiaries St. Louis . ---.-.-.-..---___- 1940 1941 550 because the number of women entitled Birmingham-Memphis-Atlanta.. 1940 1942 564 LosAn&.._- -_- ______21940 1942 758 to benefits on their own wage records 12middle-sized Ohio cities. __-__.. 1941-42 1944 565 in various surveys was not large enough ----.-- .______._... 1’340~-14 3 1946 415 Philadelphia-Baltimore-- -_... 1940-47 1949 461 to provide an adequate basis for analysis Women: ’ within each work-capacity class. The Philadelphia-Baltimore- --_ _-__. 1YUl 11141 information obtained, however, indicates St.Louis..-.-.....--....--....--- 1940 1941 if Birmingham-Memphis-Atlant3~ 1940 1’942 53 that the general conclusions derived LosAn~eles ...... -.-.-_-_- .____.. 21940 1’942 186 from the study of the men are likewise 12middle-sized Ohio cities. _._ ___. 194142 lM-14 applicable to the women. No women Boston~...~...... ~...~.. 1940-44 3 1946 ii primary beneficiaries were included In - - the 1949 Philadelphia-Baltimore survey. * At t.he time of the interview. 4 Women old-age insurance beneficiaries were CT- 2 Includes January 1941entitlements. ciuded from the 1949Philadelphia-Baltimore survey 4 Twelve consecutive calendar months * Includes Janunry 1947interviews. of 1940-47entitlements. preceding the month of the interview.

Bulletin, June 1951 11 thirds of the men who said they were ical exertion; some probably could for full-time employment in their able to work full time were employed not have worked at all, but because customary jobs. They formed the full time throughout the year. When they said they were able to do “cer- following proportions of the benefi- the demand for labor was less urgent, tain types of work” they were in- ciaries in the various survey areas however, the proportion with some cluded with those who might take on the day of the interview. employment among the retirement part-time or light jobs. beneficiaries who thought they were The largest group among the bene- Percent disabled able to work was smaller (from 44 to ficiaries in this class who had some Surveg-area and survey year - 72 percent in the various survey employment were the men-mostly Men Women areas) because older men and women manual workers-who worked a part ___- Philadelphia-Baltimore (1941). 60 70 are ordinarily marginal workers who or all of the survey year at jobs that St.Louis (1941).- ...... ___... 52 67 I3irmingham-Memphis- find difilculty in obtaining jobs in required less physical exertion than Atlsnta (194!2..~ .._.... -. 49 70 ;n&xtry or commerce. their usual occupations. A few (1942) ...... 51 62 12 middle-sized Ohio cities worked full time throughout the year (1944)...... ____.... ____.-. 77 Boston (1948).- ____..-- ._..... BJ Ilreapacitated for any kind of in small businesses of their own. One Philadelphia-Baltimore (1949). (9 work .-Most of the beneficiaries who old man, for example, who had been said they were unable to work at all a sprayer in a piano factory, boarded Women primnrg beneficiaries excluded from the were probably sick. They said they dogs during the survey year. Some sur”ey. were suffering from heart disease, worked full time in industry but at high blood pressure, paralysis, arth- relatively easy jobs; a former painter There were more disabled bene- ritis, anemia, failing vision, cancer, who was employed as a watchman ficiaries in Boston (1946) and in kidney disease, and other degenera- was typical. Most of this group, how- Philadelphia-Baltimore (1949 1 than tive conditions associated with aging. ever, had only casual employment in the other survey areas, largely be- A few of the men-during the 1944 during the year; a former carpenter cause the beneficiaries in those two survey year as many as 29 percent worked occasionally for private fa,mi- areas had been entitled longer-from and in the other years from 4 to 19 lies, and a former laborer in a steel 1 to 6 or from 1 to 9 years, respec- percenGhad some employment, mill did gardening for his neighbors. tively-than in the earlier surveys, most!y casual work. The majority, A small number of men worked where the beneficiaries interviewed however, had quit working by the during part or all of the year in their had been entitled only from 1 to 3 time of the interview, and others ob- usual types of occupation. Some in years. Because these Boston and viously were working in spite of seri- this group found after their reem- Philadelphia-Baltimore studies are ous health handicaps. pioyment that the work was too hard, more recent and include beneficiaries From a study of their employment and they had to quit. A laborer in the who had been on the benefit rolls for records during the survey year and steel industry, for example, was em- a longer period, the findings as to their own comments on their health, ployed 8 months of the survey year disability in these two samples are it may be concluded that, for prac- as a laborer but stopped because he undoubtedly more representative of tical purposes in estimating the pro- could not perform the heavy duties all retirement beneficiaries in the portion of beneficiaries who were in- required. He said he had pains in United States before the 1950 amend- capacitated for work at their usual his legs but that he could hold a ments went into effect than are the occupations, all the beneficiaries who light job. Others worked full time earlier ones. said they were unable to work should during the year but told the inter- The samples on which the above be counted as disabled. viewers that they could not keep on percentages are based contained a much longer; a few appeared able few individuals who worked full time Able to work only part time or at to continue at full-time work in their in covered employment during the light jobs.-The beneficiaries who usual OccupatioiY3. entire year and received no benefits. said they could work only part time A portion of the group of benefici- Percentages based on samples in- or at light jobs included men and aries who said they could work but cluding only beneficiaries who re- women in a variety of situations. Ex- had reservations as to their work ceived benefits part or all of the year cept for the 1944 survey year in Ohio, capacity clearly should be included would be slightly larger. Moreover, where the proportion was 70 percent, among those who were disabled in the approximately 2 percent of the bene- less than half (from 32 to 46 percent) sense of not being able to work at ficiaries originally selected for the of the men who said they could work their regular jobs. A conservative samples could not be interviewed be- only part time or at light jobs had estimate would include half the group. cause they were too ill. Their inclu- any employment during the year sion also would raise the proportion studied. Some of the beneficiaries Percent Disabled who were disabled. In estimating the who were not working had become If to the number of totally dis- disability rate for all the old-age in- discouraged about getting jobs and abled beneficiaries is added one-half surance beneficiaries in the country, believed themselves unable to work the number who said they could work both these circumstances have been at their usual occupations. Others only part time, the result would be taken into account. obviously could not have held full- a conservative estimate of the total The immediate effect of the pro- time jobs that required much phys- number who are probably disabled (Continued on page 23)

12 Social Security Table L-Contributions and taxes collected under selec;;f8~o&ial insurance and related programs, by specified period,

[In thousands] I Retuement, disability, and survivors insurnnceI- Period Taxes on Railroad Federal Federal carriers state Federal memploymeut insurance civil-service and their nemploymen nemploymen insurance contributions 1’ contributions : employees ontributions * taxes 4 :ontributions 5

Fiscal year: 194849~-.~--.-...... -.-...... ~.~ ..- $2 yQ$3”g $553,461 $563,633 $988,965 1949-50~...... ~~.~.~ ...... - , , 6662,262 550,172 1,094,406 ‘9 months ended: ...... ~_..._...... ~.~.~~~~..~...._. 1,217,888 465 675 425,244 736,693 206,610 7.514 March1950...... ~...... ~~...... ~.~~~~~.~..~ ... 1,523,938 56;: ,581 415,891 i71,953 206,615 13,021 March1951...... ~.~.~.~~.....~.~ - 2,155,246 588,041 430,496 910,601 210.960 18.061 1950 229,491 30,109 123,100 8.166 9,461 4,899 85,657 29,554 3,229 104.439 3,692 363 274,447 32,642 5,881 211,916 14,275 197 222,345 32,486 125,171 6,968 1,723 5,273 200,876 32,326 875 121.218 1,785 222 316,310 31,398 10,492 205.10+ 13,470 127 185,074 6 333,303 125,958 6,035 1,347 5,665 181,498 34,085 2,7&3 116,786 1,980 17 287,928 32,168 9,817 191.143 12,398 168 239,131 29,178 132.961 9,980 2,716 5,337

33,958 1,567 96,405 16,319 22 29,752 6,508 153,307 146,981 155 31,874 139,527 10,621 13,963 5,847

1 Represents contributions of employees and employers in employments ployees; excludes contributions collected for deposit in State sickness insurance covered by old-age and survivors insurance. funds. Data reported by State agencies;corrected to Apr. 23, 1951. 2 Represents employee and Government contributions to the civil-service re- 4 Represents taxes paid by employers under the Federal Unemployment Tax tirement and disability fund (including Alaska Railroad, Canal Zone, and Office Act. of the Comptroller of the Currency retirement and disability funds integrated 6 Beginning 1947,also covers temporary disability insurance. since July 1949with principal fund); Government contributions are made in 1 6 Represents contributions of $28.3million from employees, and contributions month for the entire Llscalyear. for fiscal year 1950-51of $305.0million from the Federal Government. 8 Represents deposits in State clearing accounts of contributions plus penalties Source: Dally Stalementof the U.S. Treasury, unless otherwise noted. and interest collected from employers and, in 2 States, contributions from em-

DISABLED BENEFICIARIES also provided by the 1950 amend- doubtedly increase with the years as (Continued from page 12) ments, since the increase in benefits the average length of time since their has served primarily to compensate entitlement, and consequently their visions in the 1950 amendments that for the increase in the cost of liv- average age, increases. The propor- confer eligibility for benefits on the ing after 1939 and not to raise the tion disabled will also increase if em- basis of six quarters of coverage has purchasing value of payments. Com- ployers change their retirement poli- probably been an increase in the dis- pared with earnings, old-age insur- cies to permit their employees to ability rate, because there are some ance benefits are still too small to pro- remain at work as long as possible, sick persons among those who could vide an inducement to retire for since fewer able-bodied persons will not previously qualify for benefits people who can keep on working. be released from their jobs. If there and who can do so n0w.j This effect When all these factors are consid- is a serious depression that forces is not likely to be offset by an in- ered, it appears probable that between able-bodied men and women aged 65 crease in the retirement of the able- two-thirds and three-fourths of the and over out of the labor market and bodied as a result of larger benefits old-age insurance beneficiaries cur- onto the benefit rolls, the trend SFor the next 20 years, workers will rently receiving benefits-men and toward a mounting disability rate continue to qualify for benefits with women combined-are disabled from among the retirement beneficiaries fewer quarters of coverage than were the standpoint of their ability to work will be reversed, because the number required under the act before the 1950 full time at their usual occupations. receiving benefits will be increased amendments, but the effect of the amend- ments on the disability rate will gradu- The proportion of retirement bene- by unemployed beneficiaries who are ally decrease. ficiaries who are disabled will un- able to work.

Bulletin, June 1951 23