Parental Disability, Disability Insurance and Teenage Labor

I explore the association between parental work-limiting disabilities (WLD) and Social Security Disability Insurance (SSDI) receipt and the labor supply of their adolescent children. Using the 2014-2023 waves of the Survey of Income and Program Participation, I estimate that having a parent with a WLD is associated with a 14% reduction in labor force participation during school months and that having a parent who receives SSDI benefits is associated with a 24% reduction in labor force participation during school months. I do not find any association between parental WLD or SDDI receipt and total hours worked. These results mask important differences by gender and race. The estimated decline in labor force participation is driven almost entirely by teenage boys while there is no association for teenage girls. Separating the sample by race, parental SSDI receipt is associated with a 50% reduction in hours worked among non-White teens. These results suggest that parental disability and SSDI receipt can have meaningful impact on how teenagers use their time, particularly boys and non-White teens. Given gaps in high school graduation rates, these time use decisions can have important impacts for later life well-being.