Racial and ethnic gaps in U.S. disability insurance approval rates are driven largely by differences in applicants' socioeconomic and health circumstances, according to a study published in Contemporary Economic Policy. Researchers examined whether disparities reflect bias in the determination process or broader differences in the applicants themselves.
The analysis found that factors such as income, education, and health status explained most of the variation in approval rates between groups. This suggests that the disability determination system may not be the primary source of observed inequities, even though meaningful gaps remain after accounting for these factors.
The study's authors emphasize that policies aimed at reducing approval disparities may need to address upstream social and economic conditions rather than focusing solely on the review process. However, the study does not rule out the possibility that process-related factors contribute to some portion of the remaining differences.