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The Distribution of Returns to Education for People with Disabilities

Author

Listed:
  • Henderson, Daniel J.

    (University of Alabama)

  • Houtenville, Andrew

    (University of New Hampshire)

  • Wang, Le

    (Virginia Tech)

Abstract

This note takes a first look at the distribution of returns to education for people with disabilities, a particularly disadvantaged group whose labor market performances have not been well studied or documented. Using a nonparametric approach, we uncover significant heterogeneity in the returns to education for these workers, which is drastically masked by the conventional parametric methods. Based on these estimates, we construct the Sharpe ratio of human capital investment (taking into account its substantial risk), and our results corroborate on the claimed importance of human capital in improving these workers' wages. Our stochastic dominance tests, however, show that the returns to education for workers with disabilities, as a group, may have been affected more adversely in the most recent recession, relative to their non-disabled counterparts.

Suggested Citation

  • Henderson, Daniel J. & Houtenville, Andrew & Wang, Le, 2017. "The Distribution of Returns to Education for People with Disabilities," IZA Discussion Papers 10747, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10747
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    References listed on IDEAS

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    Cited by:

    1. Simon Reinwald & Silvia Annen, 2023. "Influence of Gender and Prior Education Intersectionality on Further Education Investments and Job Satisfaction," SAGE Open, , vol. 13(2), pages 21582440231, June.

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    More about this item

    Keywords

    education; disability; heterogeneity; risk;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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