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Age and disability: Explaining the wage differential

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  • Gannon, Brenda
  • Munley, Margaret

Abstract

This paper estimates the level of explained and unexplained factors that contribute to the wage gap between workers with and without disabilities, providing benchmark estimates for Ireland. It separates out the confounding impact of productivity differences between disabled and non-disabled, by comparing wage differentials across three groups, disabled with limitations, disabled without limitations and non-disabled. Furthermore, data are analysed for the years 1995-2001 and two sub-samples pre and post 1998 allow us to decompose wage differentials before and after the Employment Equality Act 1998. Results are comparable to those of the UK and the unexplained component (upper bound of discrimination) is lower once we control for productivity differences. The lower bound level depends on the contribution of unobserved effects and the validity of the selection component in the decomposition model.

Suggested Citation

  • Gannon, Brenda & Munley, Margaret, 2009. "Age and disability: Explaining the wage differential," Social Science & Medicine, Elsevier, vol. 69(1), pages 47-55, July.
  • Handle: RePEc:eee:socmed:v:69:y:2009:i:1:p:47-55
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. John Cullinan & Brenda Gannon & Eamon O’Shea, 2013. "The welfare implications of disability for older people in Ireland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 171-183, April.
    2. 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.
    3. Ricardo Pagán, 2013. "Job Satisfaction and Domains of Job Satisfaction for Older Workers with Disabilities in Europe," Journal of Happiness Studies, Springer, vol. 14(3), pages 861-891, June.
    4. Pagan, Ricardo & Haro, Carmen Ordóñez de & Sánchez, Carlos Rivas, 2016. "Obesity, job satisfaction and disability at older ages in Europe," Economics & Human Biology, Elsevier, vol. 20(C), pages 42-54.
    5. Stephane Gregoir; & Tristan-Pierre Maury;, 2012. "On the impact of social housing on the labour position of disabled," Health, Econometrics and Data Group (HEDG) Working Papers 12/22, HEDG, c/o Department of Economics, University of York.
    6. Ben Halima, Mohamed Ali & Rococo, Emeline, 2014. "Wage differences according to health status in France," Social Science & Medicine, Elsevier, vol. 120(C), pages 260-268.
    7. Ricardo Pagán-Rodríguez, 2013. "Being Under Time Pressure: The Case of Workers with Disabilities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 831-840, December.
    8. Pagán, Ricardo, 2013. "Time allocation of disabled individuals," Social Science & Medicine, Elsevier, vol. 84(C), pages 80-93.
    9. Pagan, Ricardo, 2011. "Ageing and disability: Job satisfaction differentials across Europe," Social Science & Medicine, Elsevier, vol. 72(2), pages 206-215, January.

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