Disability and Labor Market Performance


Book Description

This paper analyzes the individual-level effects of disability onset on labor market outcomes using novel administrative data from Germany. Combining propensity score matching techniques with an event-study design, we find lasting negative impacts on employment and wages. One important mechanism is transitions to nonemployment after disability onset: newly disabled individuals' probability of becoming nonemployed increases by 10 percentage points after one year and by 15 percentage points after five years relative to that of the control group. For those who stay in employment, working part-time and switching to less physically or psychosocially demanding jobs are important adjustment paths. The negative labor market effects of disability onset are more pronounced for severely disabled, older and low-skilled individuals.







The Impact of Local Labor Market Characteristics on the Disability Process


Book Description

This report examines the impact of local labor market characteristics on three steps in the disability process: The perception of oneself as disabled; the decision to apply for benefits under the social security disability insurance program (SSDI); and the determination of disability status under SSDI. The research attempts to determine whether the elements of an individual's local economic environment play a role in the various steps of the disability process specifically above and beyond his or her own demographic characteristics and economic motivations. Among the key variables used to measure the local economic environment are the unemployment rate, the percent of families below the low income (poverty) level, rural location, occupational diversity and the percent of the unemployed exhausting their unemployment benefits. With the exception of the last variable, which is measured on a statewide basis, all variables pertain to the county of residence. The results contradict earlier findings which were based on aggregated data. No significant effect on any of the three elements in the disability process was found for either variable measuring the dimensions of the unemployment problem. With few exceptions, results from the other labor market variables were sketchy at best. One surprising result is noted with respect to the benefit replacement ratio, the variable intended to measure the relative attractiveness of SSDI benefits.







Disability and Labor Market Outcomes in the United States


Book Description

Disabled individuals have long faced social and physical barriers to entering the U.S. labor force. The 1990 Americans with Disabilities Act (ADA), a key piece of civil rights legislation for the disabled community, aimed to curb the discrimination in hiring and employment practices, and to improve labor market outcomes for disabled workers. This study seeks to investigate the link between disabilities and the social ability to be equally successful as non-disabled individuals in the U.S. labor market, particularly examining the relationships between disability, educational attainment, and labor market outcomes. Using disability supplementary data from the January 2009 Current Population Survey produced by the Bureau of Labor Statistics, this study finds a substantial and statistically significant negative impact of having a disability on the social ability to secure equal wage rates in the job marketplace: workers with a disability, on average, earned approximately 21 percent less in weekly wages than their non-disabled counterparts, holding other factors constant. When incorporating the interactive effects of disability on education, the effect of education on wages is also conditioned by the fact that disability status affects the level of education, and this relationship is statistically significant. These findings support the existing body of literature on disability in the United States in suggesting that the ADA is simply not sufficient in leveling the proverbial playing field for employed individuals whose disabilities require actual accommodation. Significant areas of further research using this data would include executing comparisons amongst disability types and labor market outcomes; a better understanding of disability discrimination and social handicaps could result refinements and improvements of both ADA policy and inclusion programs to mitigate this added burden on disabled individuals.




The Decline in Employment of People with Disabilities


Book Description

Topics covered include changes in the nature of work, rising health care expenditures, changing disability population, the American with Disabilities Act, social security disability insurance.







Disability, Work, and Cash Benefits


Book Description

Reviews the US Social Security disability programme, with a view to determining whether rehabilitation and work could be incorporated in the income programme without greatly expanding costs or weakening the right to benefit for disabled persons.