Highlights from a new study on the lifetime earnings growth of individuals with childhood-onset disabilities

A study by Statistics Canada researchers Sung-Hee Jeon, Jungwee Park and Dafna Kohen recently published in Health Economics offers important new insights into the lifelong evolution of the earnings of individuals with a disability that started when they were children. The study notes that, unlike many other manifestations of ill health, disability can result in a health condition that will last the rest of a person’s life. It can instantly destroy job-specific human capital accumulated over a long period and seriously affect an individual’s ability to work. Having a prolonged disability is generally known to be negatively associated with employment and earnings. For some individuals with a disability, the main labour market challenge is to find employment. Others may find it difficult to retain their jobs or qualify for promotion opportunities. Yet, individuals with disabilities can also adapt to their physical or mental limitations and develop new skills that may fully or partially offset the lost skills or abilities. How successfully individuals can adapt to their disability is likely to depend on the onset age, nature and severity of the disability. Researchers must consider these essential factors when they study the long-term effects of disability on labour market outcomes.