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Interpreting Wage Gaps of Disabled Men: The Roles of Productivity and of Discrimination

  • Simonetta Longhi

    (Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester CO4 3 SQ, United Kingdom)

  • Cheti Nicoletti


    (Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester CO4 3 SQ, United Kingdom)

  • Lucinda Platt

    (‡entre for Longitudinal Studies, Institute of Education, 20 Bedford Way, London WCIH 0AL, United Kingdom)

Using the UK Labour Force Survey, we study wage gaps for disabled men after the introduction of the Disability Discrimination Act. We estimate wage gaps at the mean and at different quantiles of the wage distribution and decompose them into a part explained by differences in workers' and job characteristics, a part that can be ascribed to health-related reduced productivity, and a residual part. The large original wage gaps reduce substantially when we control for differences in education and occupation, although significant residuals remain. However, when we isolate productivity differences between disabled and nondisabled workers, the residual wage gap becomes insignificant in most cases.

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Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 78 (2012)
Issue (Month): 3 (January)
Pages: 931-953

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Handle: RePEc:sej:ancoec:v:78:3:y:2012:p:931-953
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