What is the relationship between disability programs and financial distress? We provide the first evidence on this relationship using several markers of financial distress: bankruptcy, foreclosure, eviction, and home sale. Rates of these adverse financial events peak around the time of disability application. Using variation induced by an age-based eligibility rule, we find that disability allowance reduces the likelihood of bankruptcy by 20 percent, foreclosure by 33 percent, and home sale by 15 percent. We present evidence that these changes reflect true reductions in financial distress. Considering these extreme events increases the optimal disability benefit amount and suggests a shorter optimal waiting time between application and benefit receipt. (JEL G51, H55, J14)

中文翻译：

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残疾和痛苦：残疾计划对财务结果的影响

残疾计划与财务困境之间有什么关系？我们使用几个财务困境的标志来提供关于这种关系的第一个证据：破产、止赎、驱逐和房屋销售。这些不利财务事件的发生率在残疾申请时达到峰值。使用基于年龄的资格规则引起的变化，我们发现残疾津贴将破产的可能性降低了 20%，止赎降低了 33%，房屋销售降低了 15%。我们提供的证据表明，这些变化反映了财务困境的真正减少。考虑到这些极端事件会增加最佳残疾福利金额，并建议缩短申请和福利收据之间的最佳等待时间。(JEL G51, H55, J14)