IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/21560.html
   My bibliography  Save this paper

The Disability Employment Puzzle: A Field Experiment on Employer Hiring Behavior

Author

Listed:
  • Mason Ameri
  • Lisa Schur
  • Meera Adya
  • Scott Bentley
  • Patrick McKay
  • Douglas Kruse

Abstract

People with disabilities have low employment and wage levels, and some studies suggest employer discrimination is a contributing factor. Following the method of Bertrand and Mullainathan (2003), new evidence is presented from a field experiment that sent applications in response to 6,016 advertised accounting positions from well-qualified fictional applicants, with one-third of cover letters disclosing that the applicant has a spinal cord injury, one-third disclosing the presence of Asperger’s Syndrome, and one-third not mentioning disability. These specific disabilities were chosen because they would not be expected to limit productivity in accounting, helping rule out productivity-based explanations for any differences in employer responses. Half of the resumes portrayed a novice accountant, and half portrayed an experienced one. The fictional applicants with disabilities received 26% fewer expressions of employer interest than those without disabilities, with little difference between the two types of disability. The disability gap was concentrated among more experienced applicants, and among private companies with fewer than 15 employees that are not covered by the ADA, although comparable state statutes cover about half of them. Comparisons above and below disability law coverage thresholds point to a possible positive effect of the ADA on employer responses to applicants with disabilities, but no clear effects of state laws. The overall pattern of findings is consistent with the idea that disability discrimination continues to impede employment prospects of people with disabilities, and more attention needs to be paid to employer behavior and the demand side of the labor market for people with disabilities.

Suggested Citation

  • Mason Ameri & Lisa Schur & Meera Adya & Scott Bentley & Patrick McKay & Douglas Kruse, 2015. "The Disability Employment Puzzle: A Field Experiment on Employer Hiring Behavior," NBER Working Papers 21560, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21560
    Note: LE LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w21560.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stijn Baert, 2016. "Wage subsidies and hiring chances for the disabled: some causal evidence," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 71-86, January.
    2. Chen, Susan & van der Klaauw, Wilbert, 2008. "The work disincentive effects of the disability insurance program in the 1990s," Journal of Econometrics, Elsevier, vol. 142(2), pages 757-784, February.
    3. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
    4. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528, Elsevier.
    5. David C. Stapleton & Richard V. Burkhauser (ed.), 2003. "The Decline in Employment of People with Disabilities: A Policy Puzzle," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number depd, August.
    6. repec:tul:wpaper:1506 is not listed on IDEAS
    7. Kathleen Beegle & Wendy A. Stock, 2003. "The Labor Market Effects of Disability Discrimination Laws," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    8. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 341-368, June.
    9. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    10. Eric French & Jae Song, 2014. "The Effect of Disability Insurance Receipt on Labor Supply," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 291-337, May.
    11. Kevin Hollenbeck & Jean Kimmel, 2008. "Differences in the Returns to Education for Males by Disability Status and Age of Disability Onset," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 707-724, January.
    12. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2013. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," American Economic Review, American Economic Association, vol. 103(5), pages 1797-1829, August.
    13. Alan B. Krueger & Douglas Kruse, 1995. "Labor Market Effects of Spinal Cord Injuries in the Dawn of the Computer Age," Working Papers 728, Princeton University, Department of Economics, Industrial Relations Section..
    14. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
    15. Alan Krueger & Douglas Kruse, 1995. "Labor Market Effects of Spinal Cord Injuries in the Dawn of the Computer Age," Working Papers 728, Princeton University, Department of Economics, Industrial Relations Section..
    16. Thomas DeLeire, 2000. "The Wage and Employment Effects of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 693-715.
    17. Marjorie L. Baldwin & Chung Choe, 2014. "Wage Discrimination Against Workers with Sensory Disabilities," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 101-124, January.
    18. Levitt, Steven D. & List, John A., 2009. "Field experiments in economics: The past, the present, and the future," European Economic Review, Elsevier, vol. 53(1), pages 1-18, January.
    19. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    20. Marjorie L. Baldwin & Chung Choe, 2014. "Re-examining the models used to estimate disability-related wage discrimination," Applied Economics, Taylor & Francis Journals, vol. 46(12), pages 1393-1408, April.
    21. David Neumark & Joanne Song & Patrick Button, 2015. "Does Protecting Older Workers from Discrimination Make It Harder to Get Hired? Evidence from Disability Discrimination Laws," NBER Working Papers 21379, National Bureau of Economic Research, Inc.
    22. Morley Gunderson & Douglas Hyatt, 1996. "Do Injured Workers Pay for Reasonable Accommodation?," ILR Review, Cornell University, ILR School, vol. 50(1), pages 92-104, October.
    23. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    24. Richard V. Burkhauser & J. S. Butler & Yang-Woo Kim & Robert R. Weathers II, 1999. "The Importance of Accommodation on the Timing of Disability Insurance Applications: Results from the Survey of Disability and Work and the Health and Retirement Study," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 589-611.
    25. Ravaud, Jean-François & Madiot, Béatrice & Ville, Isabelle, 1992. "Discrimination towards disabled people seeking employment," Social Science & Medicine, Elsevier, vol. 35(8), pages 951-958, October.
    26. Julie L. Hotchkiss, 2003. "The Labor Market Experience of Workers with Disabilities: The ADA and Beyond," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number lmewd, August.
    27. Burkhauser, Richard V. & Butler, J. S. & Kim, Yang Woo, 1995. "The importance of employer accommodation on the job duration of workers with disabilities: A hazard model approach," Labour Economics, Elsevier, vol. 2(2), pages 109-130, June.
    28. Jerry L. Mashaw & Virginia Reno & Richard V. Burkhauser & Monoroe Berkowitz (ed.), 1996. "Disabiltiy, Work, and Cash Benefits," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number dwcb, August.
    29. Christine Jolls & J.J. Prescott, 2004. "Disaggregating Employment Protection: The Case of Disability Discrimination," NBER Working Papers 10740, National Bureau of Economic Research, Inc.
    30. repec:feb:artefa:0087 is not listed on IDEAS
    31. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    32. Julie L. Hotchkiss, 2004. "A Closer Look at the Employment Impact of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mori, Yuko & Sakamoto, Norihito, 2018. "Economic consequences of employment quota system for disabled people: Evidence from a regression discontinuity design in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 48(C), pages 1-14.
    2. Douglas Kruse & Lisa Schur & Sean Rogers & Mason Ameri, 2018. "Why Do Workers with Disabilities Earn Less? Occupational Job Requirements and Disability Discrimination," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 798-834, December.
    3. Kevin F. Hallock & Xin Jin & Michael Waldman, 2022. "The total compensation gap, wage gap and benefit gap between workers with and without a disability," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 3-31, March.
    4. Kim, Soojin & Rhee, Serena, 2018. "Measuring the effects of employment protection policies: Theory and evidence from the Americans with Disabilities Act," Labour Economics, Elsevier, vol. 54(C), pages 116-134.
    5. Mori, Yuko & 森, 悠子 & Sakamoto, Norihito & 坂本, 徳仁, 2014. "Economic Consequences of Employment Quota System for Disabled People: Evidence from a Regression Discontinuity Design in Japan," Discussion Papers 2014-10, Graduate School of Economics, Hitotsubashi University.
    6. Lamichhane, Kamal & Sawada, Yasuyuki, 2013. "Disability and returns to education in a developing country," Economics of Education Review, Elsevier, vol. 37(C), pages 85-94.
    7. Burkhauser, Richard V. & Butler, J. S. & Gumus, Gulcin, 2003. "Dynamic Modeling of the SSDI Application Timing Decision: The Importance of Policy Variables," IZA Discussion Papers 942, Institute of Labor Economics (IZA).
    8. Tobias Müller & Stefan Boes, 2020. "Disability insurance benefits and labor supply decisions: evidence from a discontinuity in benefit awards," Empirical Economics, Springer, vol. 58(5), pages 2513-2544, May.
    9. Kevin Hollenbeck & Jean Kimmel, 2008. "Differences in the Returns to Education for Males by Disability Status and Age of Disability Onset," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 707-724, January.
    10. Patrick Button & Philip Armour & Simon Hollands, 2023. "Estimating the Effects of the ADA Amendments Act on the Hiring and Termination of Individuals with Disabilities, Using New Disability Categorizations," Upjohn Working Papers 22-377, W.E. Upjohn Institute for Employment Research.
    11. repec:tul:wpaper:1506 is not listed on IDEAS
    12. Müller, Tobias & Boes, Stefan, 2016. "Disability Insurance Benefits and Labor Supply Choices: Evidence from a Discontinuity in Benefit Awards," MPRA Paper 70957, University Library of Munich, Germany.
    13. Lex Borghans & Anne C. Gielen & Erzo F. P. Luttmer, 2014. "Social Support Substitution and the Earnings Rebound: Evidence from a Regression Discontinuity in Disability Insurance Reform," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 34-70, November.
    14. Hamish Low & Luigi Pistaferri, 2020. "Disability Insurance: Theoretical Trade‐Offs and Empirical Evidence," Fiscal Studies, John Wiley & Sons, vol. 41(1), pages 129-164, March.
    15. Gordon B. Dahl & Anne C. Gielen, 2021. "Intergenerational Spillovers in Disability Insurance," American Economic Journal: Applied Economics, American Economic Association, vol. 13(2), pages 116-150, April.
    16. Andreas Ravndal Kostol & Magne Mogstad, 2014. "How Financial Incentives Induce Disability Insurance Recipients to Return to Work," American Economic Review, American Economic Association, vol. 104(2), pages 624-655, February.
    17. Purvi Sevak & John O'Neill & Andrew Houtenville & Debra L. Brucker, 2016. "State and Local Determinants of Employment Outcomes among Individuals with Disabilities," Working Papers 16-21, Center for Economic Studies, U.S. Census Bureau.
    18. John J. Donohue III & Michael Ashley Stein & Christopher L. Griffin, Jr. & Sascha Becker, 2011. "Assessing Post‐ADA Employment: Some Econometric Evidence and Policy Considerations," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 8(3), pages 477-503, September.
    19. Bruce Meyer & Wallace K. C. Mok, 2016. "Disability, Earnings, Income and Consumption," NBER Chapters, in: Social Insurance Programs (Trans-Atlantic Public Economics Seminar, TAPES), National Bureau of Economic Research, Inc.
    20. Vall Castello, Judit, 2012. "Promoting employment of disabled women in Spain; Evaluating a policy," Labour Economics, Elsevier, vol. 19(1), pages 82-91.
    21. Zweimüller, Josef & Lalive, Rafael & Wuellrich, Jean-Philippe, 2009. "Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach," CEPR Discussion Papers 7373, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • K39 - Law and Economics - - Other Substantive Areas of Law - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:21560. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.