SSI Estimates

Hi Douglas,

I have no idea how a person gets that kind of benefits, but I ran & uploaded a tabulation on the 2010-2014 file, breaking the population at the $13,200 mark. There are over 746,000 people getting above $13,200, with an average SSIP (in that group) of about $19,000. Some of them do get $30,000. Because the 746,095 live in 680,807 households (PL_Wgtp) the vast majority of them do not live with another person making above the threshold (unless a lot live in group quarters ... ) - I don't know if that helps or not.

- John Grumbine

[Updated on 4/19/2016 9:08 PM]

My thoughts are not likely to be terribly reassuring...

People lie (sometimes unwittingly). We spend a great deal of time talking about sampling error, but we often forget to discuss all of the other types of error that affect surveys. There is considerable evidence that self-report is subject to recall bias, mis-interpretation of the question, and (sometimes) outright fabrication. See, for example: www.npr.org/.../mischievous-responders-confound-research-on-teens

So, it may be that the respondents mis-interpreted the question and recorded some income as "SSI" that isn't really SSI. It may be that the respondent fabricated an answer (income questions are notoriously touchy). It may be that those values were imputed.

It may also be that they're collecting more income than they "should," whether because of a mistake on the part of the government or because of fraud...

As for how to deal with it in your analysis... it depends on your purpose.
You could drop those cases, top-code those cases, or treat them differently in your sample.

I agree with Beth's assessment about misreported and misclassified income.

I just want to add that there are a few explanations for legitimate annual payments that are higher than the $13,200 threshold.

The ACS question doesn't ask who the beneficiary is, only who collects the income. The relative of a beneficiary who resides in an institution (nursing home, hospital, etc.) may collect SSI on that relative's behalf. If the respondent is also beneficiary, he/she could report up to twice the threshold. Unless the other person is in the household, there is no way to confirm a relationship. You also sometimes see this with people managing aging parents' income/earnings who may or may not live with their kids.

Also, SSI and SSDI will sometimes make lump-sump back payments to compensate for time waiting for the disability determination was being made.

Both these situations may not explain the $30k reports, but a hard threshold may not be appropriate either.