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The Effects of Disability on Labour Force Status in Australia

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  • Roger Wilkins

Abstract

Using the Australian Bureau of Statistics 1998 Survey of Disability, Ageing and Carers, this study examines the effects of disability on four labour market outcomes: not in the labour force, unemployed, part-time employed and full-time employed. The detailed information on health available in the dataset also facilitates investigation of the dependence of effects on the characteristics of the disability, including severity, impairment type and age of onset. Disability is found to have substantial effects on labour force status, on average acting to decrease the probability of labour force participation by one-quarter for males and one-fifth for females. For males, the decrease in fulltime employment accounts for almost all of the decrease in labour force participation associated with disability; for females, disability has negative effects on both full-time and part-time employment. Analysis of disability characteristics shows that adverse effects on labour force status are increasing in the severity of the disability and are also worse for those with more than one type of impairment and for those who experience disability onset at older ages. There is evidence that the adverse effects of disability are lower for males who completed their education after the onset of the disability. Copyright 2004 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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Bibliographic Info

Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal The Australian Economic Review.

Volume (Year): 37 (2004)
Issue (Month): 4 (December)
Pages: 359-382

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Handle: RePEc:bla:ausecr:v:37:y:2004:i:4:p:359-382

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Cited by:
  1. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, . "A sequential model for older workers’ labor transitions after a health shock," Working Papers 2005-23, FEDEA.
  2. Umut Oguzoglu, 2010. "Dynamics of work limitation and work in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 656-669.
  3. Jones, Melanie K. & Mavromaras, Kostas G. & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute for the Study of Labor (IZA).
  4. Productivity Commission, 2006. "The Role of Non-Traditional Work in the Australian Labour Market," Research Papers 0601, Productivity Commission, Government of Australia.
  5. Stefanescu, Razvan & Dumitriu, Ramona & Nistor, Costel, 2012. "Policies to encourage the employment of people with disabilities: case of Romania," MPRA Paper 41637, University Library of Munich, Germany, revised 20 Mar 2012.
  6. Cobb-Clark, Deborah A. & Stillman, Steven, 2006. "The Retirement Expectations of Middle-Aged Individuals," IZA Discussion Papers 2449, Institute for the Study of Labor (IZA).
  7. Cain Polidano & Ha Vu, 2012. "Labour Market Impacts from Disability Onset," Melbourne Institute Working Paper Series wp2012n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Lixin Cai & Guyonne Kalb, 2007. "Health status and labour force status of older working-age Australian men," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 10(4), pages 227-252, December.
  9. Kostas Mavromaras & Cain Polidano, 2011. "Improving the Employment Rates of People with Disabilities through Vocational Education," Melbourne Institute Working Paper Series wp2011n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  10. D.P. Doessel & Ruth F.G. Williams, 2011. "Disabled people's living standards: filling a policy vacuum," International Journal of Social Economics, Emerald Group Publishing, vol. 38(4), pages 341-357, March.
  11. Patrick Laplagne & Maurice Glover & Anthony Shomos, 2007. "Effects of Health and Education on Labour Force Participation," Staff Working Papers 0704, Productivity Commission, Government of Australia.
  12. Cain Polidano & Ha Vu, 2012. "Labour market impacts from disability onset," ANU Working Papers in Economics and Econometrics 2012-583, Australian National University, College of Business and Economics, School of Economics.

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