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I am grateful to Courtney Coile, Kevin Frisch and particularly Sue Dynarski for excellent research assistance, to Doug Bernheim, John Bound, Peter Diamond, Louis Kaplow, Don Parsons and seminar participants at Harvard University, Brown University, and the NBER for helpful comments, to Marilyn Knock and Ging Wong for comments and invaluable assistance with data collection, to Bernard Dussault and Pierre Plamondon for endless patience in explaining the institutional features of the Canadian DI system, and to Human Resources Development Canada and the National Institute of Aging for financial support. Finally, I would add that the views expressed in this study are those of the author, and not necessarily those of Human Resources Development Canada.