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Labour market impacts from disability onset

  • Cain Polidano

    ()

  • Ha Vu

    ()

In this paper we estimate the causal impacts of disability onset on labour market outcomes up to four years after onset using longitudinal data from the Household Income and Labour Dynamics Australia (HILDA) survey and difference-in-difference propensity score matching techniques. We find lasting negative impacts on full-time employment, which is linked more to people foregoing opportunities to move to full-time work rather than downshifting from full-time to part-time work. Impacts are greater for those without post-school qualifications because they face poor prospects once dislocated from work. These results point to the importance of prevention and vocational rehabilitation programs that are targeted at lowskilled workers.

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File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp583.pdf
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Paper provided by Australian National University, College of Business and Economics, School of Economics in its series ANU Working Papers in Economics and Econometrics with number 2012-583.

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Length: 33 Pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:acb:cbeeco:2012-583
Contact details of provider: Postal: Canberra, ACT 2601
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Web page: http://rse.anu.edu.au/
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  1. Lixin Cai, 2007. "The Relationship between Health and Labour Force Participation: Evidence from a Panel Data Simultaneous Equation Model," Melbourne Institute Working Paper Series wp2007n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. 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.
  3. 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.
  4. Arulampalam, Wiji, 2000. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," IZA Discussion Papers 189, Institute for the Study of Labor (IZA).
  5. Julie Hotchkiss, 2004. "Growing part-time employment among workers with disabilities: marginalization or opportunity?," Economic Review, Federal Reserve Bank of Atlanta, issue Q 3, pages 25-40.
  6. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  7. Horton, Nicholas J. & Kleinman, Ken P., 2007. "Much Ado About Nothing: A Comparison of Missing Data Methods and Software to Fit Incomplete Data Regression Models," The American Statistician, American Statistical Association, vol. 61, pages 79-90, February.
  8. Lechner, Michael & Vazquez-Alvarez, Rosalia, 2003. "The Effect of Disability on Labour Market Outcomes in Germany: Evidence from Matching," IZA Discussion Papers 967, Institute for the Study of Labor (IZA).
  9. Melanie K. Jones, 2007. "Does Part-Time Employment Provide A Way Of Accommodating A Disability?," Manchester School, University of Manchester, vol. 75(6), pages 695-716, December.
  10. repec:mpr:mprres:6178 is not listed on IDEAS
  11. Richard V. Burkhauser & Mary C. Daly, 1998. "Disability and work: the experiences of American and German men," Economic Review, Federal Reserve Bank of San Francisco, pages 17-29.
  12. Knights, Stephen & Harris, Mark N & Loundes, Joanne, 2002. "Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 284-98, September.
  13. Roger Wilkins, 2004. "The Effects of Disability on Labour Force Status in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(4), pages 359-382, December.
  14. Michael P. Kidd & Peter J. Sloane & Ivan Ferko, 1998. "Disability and the Labour Market: an analysis of British males," Working Papers 98-10, Department of Economics, University of Aberdeen.
  15. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
  16. John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment," NBER Working Papers 5159, National Bureau of Economic Research, Inc.
  17. 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.
  18. Gregg, Paul, 2001. "The Impact of Youth Unemployment on Adult Unemployment in the NCDS," Economic Journal, Royal Economic Society, vol. 111(475), pages F626-53, November.
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