IDEAS home Printed from https://ideas.repec.org/a/eee/jjieco/v48y2018icp1-14.html
   My bibliography  Save this article

Economic consequences of employment quota system for disabled people: Evidence from a regression discontinuity design in Japan

Author

Listed:
  • Mori, Yuko
  • Sakamoto, Norihito

Abstract

This study examines the effect of Japanese employment quota system for disabled people on their employment. By using administrative data from Japan, we show that a levy-grant scheme increases the employment of disabled workers in Japan's manufacturing industry. In addition, we find that small-sized firms hire disabled workers when increasing firm size, although they are not obligated to pay levies. Finally, we use the number of disabled workers assigned by the quota system as an instrumental variable (IV) to evaluate the impact of disability employment on a firm's profit rate. The results of the fuzzy regression discontinuity design (RDD) suggest that an increase in the number of disabled workers does not necessarily decrease a firm's profit rate, which is in contrast to the results of the ordinary least squares (OLS) regression that suggest a negative relationship between the profit rate and disability employment.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jjieco:v:48:y:2018:i:c:p:1-14
    DOI: 10.1016/j.jjie.2017.02.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0889158317300035
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jjie.2017.02.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rohini Pande, 2003. "Can Mandated Political Representation Increase Policy Influence for Disadvantaged Minorities? Theory and Evidence from India," American Economic Review, American Economic Association, vol. 93(4), pages 1132-1151, September.
    2. Christine Jolls & J.J. Prescott, 2004. "Disaggregating Employment Protection: The Case of Disability Discrimination," NBER Working Papers 10740, National Bureau of Economic Research, Inc.
    3. 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.
    4. 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.
    5. Edward J. Schumacher & Marjorie Baldwin, 2000. "The Americans with Disabilities Act and the Labor Market Experience of Workers with Disabilities: Evidence from the SIPP," JCPR Working Papers 178, Northwestern University/University of Chicago Joint Center for Poverty Research.
    6. 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.
    7. 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.
    8. 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.
    9. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    10. Yuko Mori & Takashi Kurosaki, 2011. "Does Political Reservation Affect Voting Behavior? Empirical Evidence from India," Global COE Hi-Stat Discussion Paper Series gd11-205, Institute of Economic Research, Hitotsubashi University.
    11. 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.
    12. Thomas DeLeire, 2001. "Changes in Wage Discrimination against People with Disabilities: 1984-93," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 144-158.
    13. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    14. 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).
    15. 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.
    16. William G. Johnson & James Lambrinos, 1985. "Wage Discrimination against Handicapped Men and Women," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 264-277.
    17. Jens Ludwig & Douglas L. Miller, 2007. "Does Head Start Improve Children's Life Chances? Evidence from a Regression Discontinuity Design," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 159-208.
    18. 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.
    19. repec:eee:labchp:v:3:y:1999:i:pc:p:3417-3528 is not listed on IDEAS
    20. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    21. Aoki,Masahiko, 1990. "Information, Incentives and Bargaining in the Japanese Economy," Cambridge Books, Cambridge University Press, number 9780521386814, January.
    22. Mori, Yuko & Kurosaki, Takashi, 2011. "Does Political Reservation Affect Voting Behavior? Empirical Evidence from India," PRIMCED Discussion Paper Series 17, Institute of Economic Research, Hitotsubashi University.
    23. Rafael Lalive & Jean-Philippe Wuellrich & Josef Zweimüller, 2013. "Do Financial Incentives Affect Firms’ Demand For Disabled Workers?," Journal of the European Economic Association, European Economic Association, vol. 11(1), pages 25-58, February.
    24. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 533-575.
    25. Haveman, Robert & Wolfe, Barbara, 2000. "The economics of disability and disability policy," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 18, pages 995-1051, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santos, José Manuel & Ortiz Martínez, Esther & Marín Hernández, Salvador, 2021. "Centros Especiales de Empleo ¿Objetivo mercantil o social? Un análisis a través del estudio de su situación económico-financiera," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 51, pages 83-105.
    2. Jiaqi Jing & Xiaoqing Feng & Jianbo Song & Boya Li, 2022. "Does the Inclusion of Disabled Employees Affect Firm Performance? Empirical Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-22, June.
    3. Singh Amrik, 2024. "Employment of Specially-Abled People in the Hotel Industry—An Indian perspective," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 14(1), pages 1-19.
    4. José Manuel Maside-Sanfiz & María-Celia López-Penabad & Ana Iglesias-Casal & Juan Torrelles Manent, 2024. "Determinants of the profitability of Sheltered Workshops: efficiency and effects of the COVID-19 crisis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    5. Kenichi Kuromiya, 2022. "Econometric analysis of the employment of persons with disabilities in prefectural boards of education," International Journal of Economic Policy Studies, Springer, vol. 16(2), pages 423-441, August.
    6. Judit Krekó & Álmos Telegdy, 2025. "The effects of a disability employment quota when compliance is cheaper than defiance," Economica, London School of Economics and Political Science, vol. 92(366), pages 614-643, April.
    7. Duryea, Suzanne & Martínez, Claudia & Smith, Raimundo, 2024. "Disability Employment Quotas: Effects of Laws and Nudges," IDB Publications (Working Papers) 13375, Inter-American Development Bank.
    8. Gustavo de Souza, 2020. "Employment and Welfare Effects of the Quota for Disabled Workers in Brazil," Working Paper Series WP 2023-11, Federal Reserve Bank of Chicago.
    9. Berlinski, Samuel & Gagete-Miranda, Jessica, 2024. "Enforcement Spillovers under Different Networks: The Case of Quotas for Persons with Disabilities in Brazil," IDB Publications (Working Papers) 13681, Inter-American Development Bank.
    10. Kodai MATSUMOTO & Yota OKUMURA & Atsushi MORIMOTO & Kazufumi YUGAMI, 2023. "The Effects of Financial Incentives on Small and Medium-sized Enterprises' Demand for Workers with Disabilities: Evidence from changes in Japan's employment quota system," Discussion papers 23019, Research Institute of Economy, Trade and Industry (RIETI).
    11. Kodai MATSUMOTO & Yota OKUMURA & Kenta NAKAMURA & Atsushi MORIMOTO & Kazufumi YUGAMI, 2024. "Revisiting Disability Employment and Firm Productivity in Japan," Discussion papers 24045, Research Institute of Economy, Trade and Industry (RIETI).
    12. Chi Kin Kwan, 2020. "Socially responsible human resource practices to improve the employability of people with disabilities," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 1-8, January.
    13. Derbyshire, Daniel W. & Jeanes, Emma & Khedmati Morasae, Esmaeil & Reh, Susan & Rogers, Morwenna, 2024. "Employer-focused interventions targeting disability employment: A systematic review," Social Science & Medicine, Elsevier, vol. 347(C).

    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 & 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.
    2. Mason Ameri & Lisa Schur & Meera Adya & F. Scott Bentley & Patrick McKay & Douglas Kruse, 2018. "The Disability Employment Puzzle: A Field Experiment on Employer Hiring Behavior," ILR Review, Cornell University, ILR School, vol. 71(2), pages 329-364, March.
    3. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    4. 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.
    5. Jin-young Choi & Myoung-jae Lee, 2017. "Regression discontinuity: review with extensions," Statistical Papers, Springer, vol. 58(4), pages 1217-1246, December.
    6. Deng, Taotao & Hu, Yukun & Ma, Mulan, 2019. "Regional policy and tourism: A quasi-natural experiment," Annals of Tourism Research, Elsevier, vol. 74(C), pages 1-16.
    7. Guido Imbens & Stefan Wager, 2019. "Optimized Regression Discontinuity Designs," The Review of Economics and Statistics, MIT Press, vol. 101(2), pages 264-278, May.
    8. Miyazaki, Takeshi, 2020. "Intergovernmental fiscal transfers and tax efforts: Regression-discontinuity analysis for Japanese local governments," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    9. Adam C. Sales & Ben B. Hansen, 2020. "Limitless Regression Discontinuity," Journal of Educational and Behavioral Statistics, , vol. 45(2), pages 143-174, April.
    10. 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.
    11. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    12. Hsu, Yu-Chin & Shiu, Ji-Liang & Wan, Yuanyuan, 2024. "Testing identification conditions of LATE in fuzzy regression discontinuity designs," Journal of Econometrics, Elsevier, vol. 241(1).
    13. Blaise Melly & Rafael Lalive, 2020. "Estimation, Inference, and Interpretation in the Regression Discontinuity Design," Diskussionsschriften dp2016, Universitaet Bern, Departement Volkswirtschaft.
    14. Kettlewell, Nathan & Siminski, Peter, 2020. "Optimal Model Selection in RDD and Related Settings Using Placebo Zones," IZA Discussion Papers 13639, Institute of Labor Economics (IZA).
    15. Yoichi Arai & Yu‐Chin Hsu & Toru Kitagawa & Ismael Mourifié & Yuanyuan Wan, 2022. "Testing identifying assumptions in fuzzy regression discontinuity designs," Quantitative Economics, Econometric Society, vol. 13(1), pages 1-28, January.
    16. Yang He & Otávio Bartalotti, 2020. "Wild bootstrap for fuzzy regression discontinuity designs: obtaining robust bias-corrected confidence intervals," The Econometrics Journal, Royal Economic Society, vol. 23(2), pages 211-231.
    17. Bartalotti Otávio, 2019. "Regression Discontinuity and Heteroskedasticity Robust Standard Errors: Evidence from a Fixed-Bandwidth Approximation," Journal of Econometric Methods, De Gruyter, vol. 8(1), pages 1-26, January.
    18. Chung Choe, 2013. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," Korean Economic Review, Korean Economic Association, vol. 29, pages 211-233.
    19. Bertanha, Marinho, 2020. "Regression discontinuity design with many thresholds," Journal of Econometrics, Elsevier, vol. 218(1), pages 216-241.
    20. Joaquín Mayorga, 2019. "The labour effect of a Disability Act. Longitudinal evidence from Chile," Working Papers wp478, University of Chile, Department of Economics.

    More about this item

    Keywords

    Disability employment; Employment quota system; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

    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:eee:jjieco:v:48:y:2018:i:c:p:1-14. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622903 .

    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.