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The Americans with Disabilities Act and the Labor Market Experience of Workers with Disabilities: Evidence from the SIPP

  • Edward J. Schumacher
  • Marjorie Baldwin

This paper uses data from the 1990 and 1993 SIPP to examine the labor market experience of workers with disabilities. We first examine wage differentials between workers with and without disabilities after providing detailed controls for job conditions. We next examine the relationship between wages and the prevalence of persons with disabilities in an occupation. The final section of the paper examines job mobility differences between workers with and without disabilities. We find that there is a relatively large wage differential between workers with and without disabilities that appears to have increased between 1990 and 1993 for males. This differential is relatively unaffected by the addition of detailed occupational charactersitics. The paper also finds support for the quality sorting hypothesis, which suggests the proportion of workers with disabilities in an occupation is capturing unmeasured ability within occupations. Finally, we find that there are relatively few differences in mobility patterns across disability status. We do find, however, that workers with disabilities are more likely to make involuntary job changes than nondisabled workers, suggesting there may be employer prejudice in terminations or that there is a higher likelihood of job mismatch among workers with disabilities. Overall, we find there are relatively few differences between 1990 and 1993, suggesting that either the ADA has not had a major impact on the labor market experience for workers with disabilities, or that these effects do not appear in the 1993 data.

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Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 178.

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Date of creation: 31 May 2000
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Handle: RePEc:wop:jopovw:178
Contact details of provider: Postal: Harris Graduate School of Public Policy Studies, 1155 E. 60th Street Chicago, IL 60637
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Web page: http://www.jcpr.org/wp/ByDate.html
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  1. 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.
  2. Barry T. Hirsch & Edward J. Schumacher, 1992. "Labor Earnings, Discrimination, and the Racial Composition of Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 602-628.
  3. repec:mpr:mprres:997 is not listed on IDEAS
  4. Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-24, March.
  5. Madrian, Brigitte C, 1994. "Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 27-54, February.
  6. Marjorie L. Baldwin & Edward J. Schumacher, . "Job Mobility among Workers with Disabilities," Working Papers 9805, East Carolina University, Department of Economics.
  7. Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-71, July.
  8. Thomas C. Buchmueller & Robert G. Valletta, 1996. "The effects of employer-provided health insurance on worker mobility," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(3), pages 439-455, April.
  9. Kanika Kapur, 1998. "The Impact of health on job mobility: A measure of job lock," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 282-298, January.
  10. Hirsch, B.T. & Macpherson, D.A., 1994. "Wages, Racial Composition, and Quality Sorting in Labor Markets," Working Papers 1994_01_01, Department of Economics, Florida State University.
  11. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  12. Daron Acemoglu & Joshua Angrist, 1998. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," NBER Working Papers 6670, National Bureau of Economic Research, Inc.
  13. 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.
  14. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, October.
  15. Westbrook, Mary T. & Legge, Varoe & Pennay, Mark, 1993. "Attitudes towards disabilities in a multicultural society," Social Science & Medicine, Elsevier, vol. 36(5), pages 615-623, March.
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