Berkowitz, Monroe, and William G. Johnson. 1970. "Towards an Economics of Disability: The Magnitude and Structure of Transfer and Medical Costs." Journal of Human Resources 5(3):271-297.

This paper attempts to provide a conceptual and statistical basis for future research into the problem of disability and its economic costs. The concept of a "workmen's disability income system" is introduced as a means of defining the boundaries of the problem. The rationale for the existence of many different transfer payment programs is analyzed. Aggregate transfer payments for disability to those of labor force age amounted to approximately $14 billion in 1967; medical costs totalled more than $20 billion, and survivor payments were crudely estimated to be nearly $3 billion. These estimates are used to derive a first approximation of economic losses of nearly $43 billion in 1967.

Mr. Berkowitz is Professor of Economics, Rutgers College, Rutgers University, the State University of New Jersey. Mr. Johnson is Research Associate, Rutgers Bureau of Economic Research, and a graduate student in the Department of Economics. This study is part of an ongoing project which is investigating various aspects of the economics of disability. C. Arthur Williams, Alfred Skolnik, Lawrence Haber, Terrence Carrol, and John F. Burton, Jr., were kind enough to comment on an earlier version of this article. Needless to say, errors and omissions in this version remain the responsibility of the authors.

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