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New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands

  • BALDWIN Marjorie L.
  • CHOE Chung

Using data from 2004 SIPP, matched to job demands from O*Net, we provide new estimates of disability-related wage discrimination. We apply state-of-the-art econometric methods to wage models which include job demands and interactions between demands and functional limitations. The interaction terms are interpreted as measures of how well disabled workers „match? to jobs which minimize the effects of functional limitations. The results suggest traditional discrimination models underestimate potential effects of disability-related discrimination by penalizing workers for limitations which may not affect their job performance. The bias is greater for men, who generally appear to find better matches than do women.

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Paper provided by LISER in its series LISER Working Paper Series with number 2010-14.

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Length: 46 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:irs:cepswp:2010-14
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  1. Chiswick, Barry R. & Miller, Paul W., 2007. "Occupational Language Requirements and the Value of English in the U.S. Labor Market," IZA Discussion Papers 2664, Institute for the Study of Labor (IZA).
  2. Tracy Regan & Ronald Oaxaca, 2009. "Work experience as a source of specification error in earnings models: implications for gender wage decompositions," Journal of Population Economics, Springer, vol. 22(2), pages 463-499, April.
  3. Marjorie L. Baldwin & William G. Johnson, 2000. "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Southern Economic Journal, Southern Economic Association, vol. 66(3), pages 548-566, January.
  4. Neuman, Shoshana & Oaxaca, Ronald L, 2004. "Wage Differentials in the 1990s in Israel: Endowments, Discrimination and Selectivity," CEPR Discussion Papers 4709, C.E.P.R. Discussion Papers.
  5. 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.
  6. Thomas DeLeire, 2001. "Changes in Wage Discrimination against People with Disabilities: 1984-93," Journal of Human Resources, University of Wisconsin Press, vol. 36(1), pages 144-158.
  7. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," Journal of Economic Inequality, Springer, vol. 2(1), pages 3-10, April.
  8. Madden, D., 1999. "Labour Market Discrimination on the Basis of Health: an Application to UK Data," Papers 99/13, College Dublin, Department of Political Economy-.
  9. 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.
  10. Marjorie Baldwin & William G. Johnson, 1994. "Labor Market Discrimination against Men with Disabilities," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 1-19.
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