IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v46y2014i12p1393-1408.html
   My bibliography  Save this article

Re-examining the models used to estimate disability-related wage discrimination

Author

Listed:
  • Marjorie L. Baldwin
  • Chung Choe

Abstract

We examine how differences in model specifications and econometric methods affect unexplained wage differentials between workers with and without physical disabilities, where the unexplained differentials are estimates of the potential effects of disability-related wage discrimination. We apply an enhanced decomposition method (Neuman and Oaxaca, 2004) to selectivity-corrected wage equations to estimate potential discrimination effects. The decomposition separates observed wage differentials into a part explained by differences in characteristics that affect productivity and the decision to work and an unexplained part potentially attributed to discrimination. In addition to the functional limitation variables used to control for the effects of disability on productivity, we add measures of physical job demands, and interaction effects between functional limitations and job demands, to the wage models to examine how estimates of potential discrimination change. The interaction terms measure the extent to which workers' physical limitations affect important job functions. Data come from the 2004 SIPP merged to measures of job demands from the Occupational Information Network (O*Net). With job demands and interactions included in the model, approximately 10% of the observed wage differential for men, and 20% for women, is potentially attributed to discrimination. Changes in decomposition technique substantially alter the estimates of discrimination effects.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:applec:v:46:y:2014:i:12:p:1393-1408
    DOI: 10.1080/00036846.2013.872762
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2013.872762
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00036846.2013.872762?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. Simonetta Longhi & Cheti Nicoletti & Lucinda Platt, 2012. "Interpreting Wage Gaps of Disabled Men: The Roles of Productivity and of Discrimination," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 931-953, January.
    2. 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.
    3. David Madden, 2004. "Labour market discrimination on the basis of health: an application to UK data," Applied Economics, Taylor & Francis Journals, vol. 36(5), pages 421-442.
    4. Tracy Regan & Ronald Oaxaca, 2009. "Work experience as a source of specification error in earnings models: implications for gender wage decompositions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 463-499, April.
    5. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.
    6. repec:wly:soecon:v:78:3:y:20121:p:931-953 is not listed on IDEAS
    7. Marjorie L. Baldwin & William G. Johnson, "undated". "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Working Papers 9715, East Carolina University, Department of Economics.
    8. Bhattacharya, Jay & Bundorf, M. Kate, 2009. "The incidence of the healthcare costs of obesity," Journal of Health Economics, Elsevier, vol. 28(3), pages 649-658, May.
    9. 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.
    10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    11. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    12. Marjorie L. Baldwin & William G. Johnson, 2000. "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 548-566, January.
    13. Melanie K. Jones & Paul L. Latreille & Peter J. Sloane, 2006. "Disability, gender, and the British labour market," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 407-449, July.
    14. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 3-10, April.
    15. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical Theories of Discrimination in Labor Markets," ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
    16. Marjorie Baldwin & William G. Johnson, 1994. "Labor Market Discrimination against Men with Disabilities," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 1-19.
    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. 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.
    2. Button, Patrick & Walker, Brigham, 2020. "Employment discrimination against Indigenous Peoples in the United States: Evidence from a field experiment," Labour Economics, Elsevier, vol. 65(C).
    3. 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.
    4. Katie M. Jajtner & Sophie Mitra & Christine Fountain & Austin Nichols, 2020. "Rising Income Inequality Through a Disability Lens: Trends in the United States 1981–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 81-114, August.
    5. 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.
    6. Jing Zheng & Yuxin Pei & Ya Gao, 2020. "Social Media as a Disguise and an Aid: Disabled Women in the Cyber Workforce in China," Social Inclusion, Cogitatio Press, vol. 8(2), pages 104-113.
    7. repec:mpr:mprres:341e1dba100a4d988613006cb2957100 is not listed on IDEAS
    8. 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.
    9. Chung Choe & Marjorie L. Baldwin, 2017. "Duration of disability, job mismatch and employment outcomes," Applied Economics, Taylor & Francis Journals, vol. 49(10), pages 1001-1015, February.
    10. Kimber Bialik & Manel Mhiri, 2022. "Barriers to employment for people with intellectual disabilities in low‐ and middle‐income countries: Self‐advocate and family perspectives," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(5), pages 988-1001, July.
    11. Ameri, Mason & Ali, Mohammad & Schur, Lisa & Kruse, Douglas L., 2019. "Disability and the Unionized Workplace," IZA Discussion Papers 12258, Institute of Labor Economics (IZA).
    12. Igei, Kengo, 2017. "Untangling Disability and Poverty: A Matching Approach Using Large-scale Data in South Africa," Working Papers 142, JICA Research Institute.
    13. Lauren A. Rivera & András Tilcsik, 2023. "Not in My Schoolyard: Disability Discrimination in Educational Access," American Sociological Review, , vol. 88(2), pages 284-321, April.

    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. BALDWIN Marjorie L. & CHOE Chung, 2010. "New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands," LISER Working Paper Series 2010-14, Luxembourg Institute of Socio-Economic Research (LISER).
    2. 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.
    3. CHOE, Chung & BALDWIN, Marjorie, 2011. "Estimates of Wage Discrimination Against Workers with Sensory Disabilities, with Controls for Job Demands," MPRA Paper 36242, University Library of Munich, Germany.
    4. repec:mpr:mprres:341e1dba100a4d988613006cb2957100 is not listed on IDEAS
    5. repec:mpr:mprres:8112 is not listed on IDEAS
    6. Gannon, Brenda & Munley, Margaret, 2009. "Age and disability: Explaining the wage differential," Social Science & Medicine, Elsevier, vol. 69(1), pages 47-55, July.
    7. Melanie Jones, 2009. "Disability, employment and earnings: an examination of heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 43(8), pages 1001-1017.
    8. 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.
    9. Pagan, Ricardo, 2011. "Ageing and disability: Job satisfaction differentials across Europe," Social Science & Medicine, Elsevier, vol. 72(2), pages 206-215, January.
    10. Simonetta Longhi & Cheti Nicoletti & Lucinda Platt, 2012. "Interpreting Wage Gaps of Disabled Men: The Roles of Productivity and of Discrimination," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 931-953, January.
    11. Pagán, Ricardo, 2013. "Time allocation of disabled individuals," Social Science & Medicine, Elsevier, vol. 84(C), pages 80-93.
    12. Chung Choe & Marjorie L. Baldwin, 2017. "Duration of disability, job mismatch and employment outcomes," Applied Economics, Taylor & Francis Journals, vol. 49(10), pages 1001-1015, February.
    13. 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.
    14. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    15. Morley Gunderson & Byron Lee & Guenther Lomas, 2022. "The importance of prejudice against persons with disabilities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 138-155, February.
    16. 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.
    17. Sophie Mitra & Usha Sambamoorthi, 2009. "Wage differential by disability status in an agrarian labour market in India," Applied Economics Letters, Taylor & Francis Journals, vol. 16(14), pages 1393-1398.
    18. 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.
    19. Nick Drydakis, 2010. "Health impairments and labour market outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(5), pages 457-469, October.
    20. Mitra, Sophie & Sambamoorthi, Usha, 2008. "Disability and the Rural Labor Market in India: Evidence for Males in Tamil Nadu," World Development, Elsevier, vol. 36(5), pages 934-952, May.
    21. Bryan, Mark & Bryce, Andrew & Rice, Nigel & Roberts, Jennifer & Sechel, Cristina, 2022. "Exploring mental health disability gaps in the labour market: the UK experience during COVID-19," Labour Economics, Elsevier, vol. 78(C).
    22. Sarah Brown & Jennifer Roberts & Karl Taylor, 2010. "Reservation wages, labour market participation and health," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 501-529, July.

    More about this item

    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:taf:applec:v:46:y:2014:i:12:p:1393-1408. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.