Papers

Abstract

This paper presents new evidence on the costs and benefits of disability insurance (DI). I start by estimating the effect of unconditional cash transfers on the labor force participation of DI beneficiaries in Denmark. I show that a large fraction of the impact of DI benefits on labor supply can be attributed to non-distortionary income effects (i.e., making it feasible for disabled workers to “afford” not to work) rather than distortionary price effects (i.e., reducing effective wages). I then show evidence that DI beneficiaries respond very differently to cash-on-hand than do non-disabled populations. In particular, the probability of an emergency room visit increases for DI beneficiaries, but not other groups, when monthly income is received, and this response to payments is present even in the years before they were granted DI benefits. This “excess sensitivity” creates fiscal externalities and may be caused by behavioral biases. These results imply that the standard approaches to welfare analysis may need to be modified to study DI and that optimal policy may involve setting the frequency at which payments are dispersed in addition to benefit levels.

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Biography

Gregory Bruich received his Ph.D. from the Department of Economics at Harvard University. His research is in public economics. He was selected for the Anya Bernstein Bassett Award for Excellence in Teaching in 2024. He was voted a “Favorite Professor” by the Harvard College Classes of 2022 and 2023. He has received the "Lunch on the Dean" teaching award from the Harvard Kennedy School of Government.  He has received the Rhodes Inspirational Educator Award from the Rhodes Trust, the John R. Marquand Award for Exceptional Advising, multiple Certificates of Distinction and Certificates of Excellence for his teaching, and a Special Commendation for Extraordinary Teaching in Extraordinary Times from the Dean of Undergraduate Education at Harvard College. He has been the Faculty Adviser for over thirty senior theses in Economics, Applied Math, Social Studies, and Statistics. He has received FAS research grants for advising seven Hoopes Prize winning senior theses. In the fall, he teaches an econometrics class for Ph.D. students (Economics 2110/HKS API 114/HBS 4170). In the spring, he teaches over 600 students across two classes: Economics 1123 Introduction to Econometrics; and Economics 50 Using Big Data to Solve Economic and Social Problems (with Raj Chetty). He has also taught other classes in Public Economics, Labor Economics, and Econometrics at Harvard. He has been nominated several times for the Star Family Prize for Excellence in Advising.

Curriculum vitae

Papers

Teaching

  • Economics 2110: Econometrics I, Harvard University (Ph.D.-level)
  • Economics 1123: Introduction to Econometrics, Harvard University (undergraduate-level)
  • Economics 50: Using Big Data to Solve Economic and Social Problems (with Raj Chetty), Harvard University
  • API 202 Z: Empirical Methods II, Harvard Kennedy School of Government (M.P.P.-level)

Online Classes on EdX

Online classes that I co-developed in collaboration with Harvard Business School Online and Opportunity Insights:

The next offering is through Harvard Online as "Big Data for Social Good" in March 2024.
 

Slides

Code