The Impact of Disability on Earnings and Labour Force Participation in Canada: Evidence from the 2001 PALS
AbstractUsing Statistics Canadaâ€™s 2001 Participation and Activity Limitation Survey (PALS) we examine the impact of disability on the annual earnings and labour force participation of Canadian men and women. Our estimates show large earnings penalties associated with disability ranging from 21 percent for mild disabilities to over 50 percent for very severe disabilities. We also find that disability is associated with a 30 percentage point reduction in labour force participation Our estimates of the impact of disability are comparable to other studies for more severe disability but our estimates of the impact of milder disabilities are substantially and significantly larger. This difference likely reflects improvements in the PALS design over previous Canadian surveys in accurately identifying mild disability versus non-disability. It is also a possibility that over the economic expansion of the 1990s, disabled individuals in the Canadian labour market fell behind their able bodied counterparts
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Bibliographic InfoPaper provided by Department of Economics, University of Calgary in its series Working Papers with number 2008-26.
Date of creation: 27 Jan 2008
Date of revision: 27 Jan 2008
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-HEA-2008-06-07 (Health Economics)
- NEP-LAB-2008-06-07 (Labour Economics)
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- John Bound & Timothy Waidmann, 2002. "Accounting for Recent Declines in Employment Rates among Working-Aged Men and Women with Disabilities," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 231-250.
- Danzon, Patricia M, 1993. "The Economic Implications of Public Disability Insurance in the United States," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages S170-200, January.
- Jon Harkness, 1993. "Labour Force Participation by Disabled Males in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 26(4), pages 878-89, November.
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