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Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990

  • Choe, Chung

    (CEPS/INSTEAD)

The study compares the labor market experience of men with disabilities before and after the Americans with Disabilities Act of 1990. The handful of studies that have focused on the wage impact of disabilities have either not fully incorporated the probability of employment into the analysis or have not correctly decomposed the wage differences in light of selectivity corrections. After estimating a two-stage model of the probability of employment followed by a wage equation for men with and without disabilities, I use Newman and Oaxaca?s (2004) method to correctly decompose the distributions. In addition, I also perform a similar analysis to explain the differentials in employment rates between the non-disabled and disabled. The analyses are performed for samples before and after the passage of the Americans with Disabilities Act of 1990. The results from studies of the Survey of Income Program Participation (SIPP) of 1984, 1990, 1996 and 2001 indicate that the employment and wage gaps between the disabled and the non-disabled have risen sharply over time, both before and after the passage of the ADA. Most of the rise prior to the ADA was attributable to arise in differences that cannot be explained with measurable factors. Nearly all of the rise in the gaps in the 1990s, however, is attributable to factors that can be measured. The unexplained differential has held relatively constant during that period.

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Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2009-07.

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Length: 42 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:irs:iriswp:2009-07
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  1. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  2. 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.
  3. 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.
  4. 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-.
  5. 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.
  6. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
  7. Michael Baker & Mark Stabile & Catherine Deri, 2004. "What Do Self-Reported, Objective, Measures of Health Measure?," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
  8. David M. Cutler & Mary Beth Landrum & Kate A. Stewart, 2006. "How Do the Better Educated Do It? Socioeconomic Status and the Ability to Cope with Underlying Impairment," NBER Working Papers 12040, National Bureau of Economic Research, Inc.
  9. Edward J. Schumacher & Marjorie Baldwin, 2000. "The Americans with Disabilities Act and the Labor Market Experience of Workers with Disabilities: Evidence from the SIPP," JCPR Working Papers 178, Northwestern University/University of Chicago Joint Center for Poverty Research.
  10. Marjorie L. Baldwin & William G. Johnson, . "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Working Papers 9715, East Carolina University, Department of Economics.
  11. Moon, Sangho & Shin, Jaeun, 2006. "The effect of the Americans with Disabilities Act on economic well-being of men with disabilities," Health Policy, Elsevier, vol. 76(3), pages 266-276, May.
  12. repec:mpr:mprres:4999 is not listed on IDEAS
  13. 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.
  14. Sven Wilson, 2001. "Work and the accommodation of chronic illness: A re-examination of the health-labour supply relationship," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1139-1156.
  15. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.
  16. 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.
  17. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  18. Ransom, Michael R. & Oaxaca, Ronald L., 2003. "Intrafirm Mobility and Sex Differences in Pay," IZA Discussion Papers 704, Institute for the Study of Labor (IZA).
  19. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April.
  20. Baldwin, Marjorie & Johnson, William G, 1992. "Estimating the Employment Effects of Wage Discrimination," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 446-55, August.
  21. 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.
  22. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102 Elsevier.
  23. John Ermisch & Robert Wright, 1994. "Interpretation of negative sample selection effects in wage offer equations," Applied Economics Letters, Taylor & Francis Journals, vol. 1(11), pages 187-189.
  24. 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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