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Disability and Labor Inclusion: Experimental Evidence from Spain

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Abstract

People with intellectual and developmental disabilities (PID) show significantly lower labor force participation and employment rates compared to people without disabilities. Customized Employment (CE) has emerged as a promising approach to improve their labor market integration. This study provides the first causal evidence on CE’s effectiveness relative to the traditional Supported Employment approach through a randomized controlled trial in Spain. Our findings show that CE substantially improves employability by increasing employment probability, hours worked, and the number of labor contracts. It also enhances participation in training programs and internships. Beyond employment, CE significantly fosters social inclusion and well-being, with effects varying based on severity of disability, recognition of dependency, and family involvement. These results underscore CE’s potential as an effective strategy for improving both labor market outcomes and social integration of PIDs.

Suggested Citation

  • Yanina Domenella & Samuel Bentolila, 2025. "Disability and Labor Inclusion: Experimental Evidence from Spain," Working Papers wp2025_2528, CEMFI.
    • Handle: RePEc:cmf:wpaper:wp2025_2528
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    1. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    2. Isabelle Weld-Blundell & Marissa Shields & Alexandra Devine & Helen Dickinson & Anne Kavanagh & Claudia Marck, 2021. "Vocational Interventions to Improve Employment Participation of People with Psychosocial Disability, Autism and/or Intellectual Disability: A Systematic Review," IJERPH, MDPI, vol. 18(22), pages 1-33, November.
    3. J. Ignacio Conde-Ruiz & Manu García & Luis A. Puch & Jesus Ruiz, 2023. "Reforming Dual Labor Markets: “Empirical” or “Contractual” Temporary Rates?," Studies on the Spanish Economy eee2023-36, FEDEA.
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    Keywords

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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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