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A Closer Look at the Employment Impact of the Americans with Disabilities Act

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  • Julie L. Hotchkiss

Abstract

This paper replicates recent findings that employment among disabled people has declined since the ADA. A closer look indicates that this decline results from a drop in the labor force participation rate among those classified as disabled. Further analysis indicates that this labor force participation rate decline, however, was not the result of disabled individuals fleeing the labor market, but, rather, more likely a result of the reclassification of nondisabled, nonparticipants, as disabled. The unconditional employment probability among disabled people (taking selection into the labor market into account) has not declined, and may have actually improved for certain disability classifications.

Suggested Citation

  • 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).
  • Handle: RePEc:uwp:jhriss:v:39:y:2004:i:4:p887-911
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    References listed on IDEAS

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    1. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-134, February.
    2. 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.
    3. William J. Carrington & Kristin McCue & Brooks Pierce, 2000. "Using Establishment Size to Measure the Impact of Title VII and Affirmative Action," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 503-523.
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    5. Jennifer M. Mellor, 1998. "The Effect of Family Planning Programs on the Fertility of Welfare Recipients: Evidence from Medicaid Claims," Journal of Human Resources, University of Wisconsin Press, pages 866-895.
    6. Thomas DeLeire, 2000. "The Wage and Employment Effects of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, pages 693-715.
    7. Jonathan Gruber, 2000. "Disability Insurance Benefits and Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1162-1183, December.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 129-137.
    9. John Bound & Timothy Waidmann, 2002. "Accounting for Recent Declines in Employment Rates among Working-Aged Men and Women with Disabilities," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 231-250.
    10. Donna K. Ginther & Kathy J. Hayes, 2003. "Gender Differences in Salary and Promotion for Faculty in the Humanities 1977–95," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    11. Daniel S. Hamermesh & Stephen J. Trejo, 2000. "The Demand for Hours of Labor: Direct Evidence from California," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 38-47, February.
    12. Steven Stern, 1989. "Measuring the Effect of Disability on Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 361-395.
    13. Haveman, Robert H & Wolfe, Barbara L, 1984. "The Decline in Male Labor Force Participation: Comment," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 532-541, June.
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    Cited by:

    1. repec:tul:wpaper:1506 is not listed on IDEAS
    2. Allison V. Thompkins, 2015. "Did the ADA Evolve into Our Ramp to Full Employment? An Analysis of 18 Years of the Americans with Disabilities Act," Mathematica Policy Research Reports cc8dbea7a581477e847c92622, Mathematica Policy Research.
    3. Hotchkiss, Julie L., 2014. "Adjusted Employment-to-Population Ratio as an Indicator of Labor Market Strength," FRB Atlanta Working Paper 2014-8, Federal Reserve Bank of Atlanta.
    4. Richard V. Burkhauser & Mary C. Daly & Jeff Larrimore & Joyce Kwok, 2008. "The Transformation in Who is Expected to Work in the United States and How it Changed the Lives of Single Mothers and People with Disabilities," Working Papers wp187, University of Michigan, Michigan Retirement Research Center.
    5. Richard Burkhauser & Jeff Larrimore, 2008. "Trends in the Relative Household Income of Working-Age Men with Work Limitations: Correcting the Record Using Internal Current Population Survey Data," Working Papers 08-05, Center for Economic Studies, U.S. Census Bureau.
    6. Denter, Philipp & Sisak, Dana, 2015. "Do polls create momentum in political competition?," Journal of Public Economics, Elsevier, vol. 130(C), pages 1-14.
    7. Thomas Kniesner & W. Viscusi & James Ziliak, 2010. "Policy relevant heterogeneity in the value of statistical life: New evidence from panel data quantile regressions," Journal of Risk and Uncertainty, Springer, vol. 40(1), pages 15-31, February.
    8. Richard V. Burkhauser & Mary C. Daly & Philip R. de Jong, 2008. "Curing the Dutch Disease: Lessons for United States Disability Policy," Working Papers wp188, University of Michigan, Michigan Retirement Research Center.
    9. David Neumark & Joanne Song & Patrick Button, 2015. "Does Protecting Older Workers from Discrimination Make It Harder to Get Hired? Revised with Additional Analysis of SIPP Data and Appendix of Disability Laws," Working Papers wp315, University of Michigan, Michigan Retirement Research Center.
    10. Jennifer Bennett Shinall, 2016. "What happens when the definition of disability changes? The case of obesity," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    11. 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.
    12. 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.
    13. Patrick Button, 2016. "Expanding Employment Discrimination Protections for Individuals with Disabilities: Evidence from California," Working Papers 1601, Tulane University, Department of Economics, revised Oct 2016.
    14. Michael Levere, "undated". "The Labor Market Consequences of Receiving Disability Benefits During Childhood," Mathematica Policy Research Reports 4a4b6e2d970c4e669ba5f4126, Mathematica Policy Research.
    15. Christine Jolls & J.J. Prescott, 2004. "Disaggregating Employment Protection: The Case of Disability Discrimination," NBER Working Papers 10740, National Bureau of Economic Research, Inc.

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