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An evaluation of the 1987 French Disabled Workers Act: better paying than hiring

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  • Thomas Barnay

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)

  • Emmanuel Duguet

    (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)

  • Christine Le Clainche

    (CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Yann Videau

    (CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

Abstract

This paper presents the first evaluation of the French Disabled Workers Act of 1987, which aimed to promote the employment of disabled people in the private sector. We use a panel data set, which includes both the health and the labour market histories of workers. We account both for unobserved heterogeneity and for the change in the disabled population over time. We find that the law had a negative impact on the employment of disabled workers in the private sector. This counterproductive effect likely comes from the possibility to pay a fine instead of hiring disabled workers.

Suggested Citation

  • Thomas Barnay & Emmanuel Duguet & Christine Le Clainche & Yann Videau, 2018. "An evaluation of the 1987 French Disabled Workers Act: better paying than hiring," Post-Print hal-02108659, HAL.
    • Handle: RePEc:hal:journl:hal-02108659
    DOI: 10.1007/s10198-018-1020-0
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    Cited by:

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    2. Asya Bellia, 2021. "How do different policy combinations affect the labour market attachment of disabled individuals? A review of the literatur," Discussion Papers 2021/283, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Ekkehard Ernst & Rossana Merola & Jelena Reljic, 2025. "Fiscal Policy Instruments for Inclusive Labor Markets: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 39(5), pages 2020-2041, December.
    4. Hiesinger, Karolin, 2022. "Cost of Inclusion? Intended and Non-intended Effects of the Employment Quota for Workers with Disabilities," VfS Annual Conference 2022 (Basel): Big Data in Economics 264026, Verein für Socialpolitik / German Economic Association.
    5. Diby, Akissi S. & Lengagne, Pascale & Regaert, Camille, 2021. "Employment Vulnerability of People With Severe Mental Illness," Health Policy, Elsevier, vol. 125(2), pages 269-275.
    6. Collischon, Matthias & Hiesinger, Karolin & Pohlan, Laura, 2023. "Disability and Labor Market Performance," IZA Discussion Papers 16100, Institute of Labor Economics (IZA).
    7. Sylvain Chareyron & Yannick L'Horty & Philom ne Mbaye & Pascale Petit, 2022. "Impacts of quota policy and employer obligation to adapt workstations on discrimination against people with disabilities: Lessons from an experiment," TEPP Working Paper 2022-17, TEPP.
    8. Florian Fouquet, 2025. "How Does Disability Affect School‐to‐Work Transitions? Evidence From a French Labour Market Integration Survey," Post-Print hal-05298607, HAL.
    9. Derbyshire, Daniel W. & Jeanes, Emma & Khedmati Morasae, Esmaeil & Reh, Susan & Rogers, Morwenna, 2024. "Employer-focused interventions targeting disability employment: A systematic review," Social Science & Medicine, Elsevier, vol. 347(C).

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