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Disability in the Labor Market: Earnings

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Abstract

In our previous post we learned that, in general, people with disabilities participate in the labor market at significantly lower rates, and that they are much more likely to be unemployed. Despite these patterns, we found that the labor force participation of workers with disabilities rose noticeably following the pandemic. A relevant question then is how earnings of workers with disabilities compare with workers without disabilities. In this companion post we investigate differences in weekly earnings for workers with and without disabilities. We find that workers with disabilities earn considerably less than workers without disabilities. Additionally, with few exceptions, their earnings have remained roughly constant in real terms since the pre-pandemic period.

Suggested Citation

  • Rajashri Chakrabarti & Thu Pham & Beckett Pierce & Maxim L. Pinkovskiy, 2026. "Disability in the Labor Market: Earnings," Liberty Street Economics 20260112b, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:102318
    DOI: 10.59576/lse.20260112b
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    Keywords

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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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