Evidence from the SIPP

The pooled, cross-sectional methodologies are appealed to again in order to determine the impact of different types of disabilities on the incidence of part-time employment and on the kind of part-time Table 4.2 Linear Probability, Voluntary Part-Time Employment Results, CPS Combined Years 1981-2000 post (year 1992 or later) 1 0.0549*** NOTE Observations from 1983 were not included because of the unreliable representation across occupational categories. Regressors included both in the...

Wage Decomposition

This section decomposes the wage differentials observed in Figure 3.1 to determine which factors have the greatest influence over their levels and growth. Standard log wage equations are estimated separately for disabled and nondisabled workers. The following specification, presented for person i, is estimated separately for each year. In these equations, ''nd'' denotes nondisabled and ''d'' denotes disabled (3.4) lnWind XriPnd + ind lnWd XdPd + eid where lnWi is the natural log hourly wage of...

Unconditional And Joint Probabilities

The labor market provisions of the ADA were motivated by a desire to eliminate barriers to disabled individuals that might exist in the labor market. An appropriate assessment of the success of the ADA in this endeavor would involve evaluation of unconditional employment outcomes. In other words, the question to be answered is whether there has been any progress in employment outcomes for the disabled person drawn from random, controlling for the likelihood that he or she is a labor force...

Participation Probabilities for the Disabled CPS 19872000

1983 1985 1987 1989 1991 1993 1995 1997 1999 1983 1985 1987 1989 1991 1993 1995 1997 1999 Again, in evaluating the barriers facing disabled workers, change in the unconditional employment probability is a more appropriate measure than the change in the joint labor force and employment outcome. Consequently, the condemnation of the employment impact of the ADA by DeLeire (2000) and Acemoglu and Angrist (2001) is misplaced, since both of these analyses confound their evaluation of employment...

Education Training And Job Characteristics

One analysis in Chapter 3 indicates that the disabled overall have suffered a cost in terms of lower relative wages post-ADA. With the exception of large firms, wages of disabled workers declined by about 3 percent post-ADA, relative to those of nondisabled workers. People with musculoskeletal disabilities suffered the bulk of the wage loss. Policy suggestions made in the previous section to facilitate worker accommodation should also go toward improving the apparent compensation tax on...

Benefit Analysis

As the percentage of fringe benefits in total compensation continues to increase, benefits become an increasingly important contributor to workers' labor market experience. The CPS allows identification of a worker receiving two fringe benefits from his or her employer health insurance and a pension plan. The data used for this analysis were obtained from the CPS March supplemental questionnaire and therefore refer to benefit coverage in the years 1980-1999. The probabilities of being included...

Job Search

The theory proposed so far as to why the disabled have a lower probability (among those who separate) of being a job loser, or experiencing an involuntary separation, is that employers are more careful in their hiring of disabled workers. Employers may feel that hiring a disabled worker is more risky, or they may fear the consequences if they would have to dismiss the worker. The greater ''care'' in hiring a disabled worker should show up in longer search spells. Of course, the observation of...

Observed and Selectivity Corrected Wage Differentials

Since 1981 (the earliest year of data), there is a clear and persistent increase in both the observed and selectivity-corrected wage differentials between disabled and nondisabled workers. Both differentials show that over this whole time period, nondisabled workers earned, on average, wages that were 23 percent higher than those of disabled workers. In addition, the corrected wage differential increased from 13 percent to 30 percent, indicating a deterioration of earnings of disabled workers...

References

Acemoglu, Daron, and Joshua Angrist. 2001. ''Consequences of Employment Protection The Case of the Americans with Disabilities Act.'' Journal of Political Economy 109(5) 915-957. Advisory Commission on Intergovernmental Relations. 1989. Disability Rights Mandates Federal and State Compliance with Employment Protections and Architectural Barrier Removal, report A-111. Washington, D.C. Advisory Commission on Intergovernmental Relations. Akerlof, George A., and Brian G.M. Main. 1981. ''An...

SIPP Sample Construction

In the terminology of the Survey of Income and Program Participation, a Panel refers to a group of interviewees and the year in which that group was first interviewed. A Wave refers to an interview within a Panel. Each Panel has anywhere from 3 (1989 Panel) to 12 (1996 Panel) interviews. Further details of the SIPP can be found on the Internet at < http www.bls.census .gov sipp > . Core data from each Wave within a Panel used for sample construction were merged with the topical module for...

Coauthored with Ludmila Rovba

Employment levels of the disabled are affected by both labor supply and labor demand issues. Individuals suffering from a functional disability will also experience a larger cost to entering the labor market as, holding all else constant, greater effort or sacrifices must be made relative to nondisabled workers. The net result is that the reservation wage (the wage at which a person is willing to enter the labor market) for disabled individuals will be higher than for the nondisabled, and fewer...