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The Effects of Disability on Labour Force Status in Australia

Author

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  • Roger Wilkins

Abstract

Using the Australian Bureau of Statistics 1998 Survey of Disability, Ageing and Carers, this study examines the effects of disability on four labour market outcomes: not in the labour force, unemployed, part-time employed and full-time employed. The detailed information on health available in the dataset also facilitates investigation of the dependence of effects on the characteristics of the disability, including severity, impairment type and age of onset. Disability is found to have substantial effects on labour force status, on average acting to decrease the probability of labour force participation by one-quarter for males and one-fifth for females. For males, the decrease in fulltime employment accounts for almost all of the decrease in labour force participation associated with disability; for females, disability has negative effects on both full-time and part-time employment. Analysis of disability characteristics shows that adverse effects on labour force status are increasing in the severity of the disability and are also worse for those with more than one type of impairment and for those who experience disability onset at older ages. There is evidence that the adverse effects of disability are lower for males who completed their education after the onset of the disability. Copyright 2004 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

Suggested Citation

  • Roger Wilkins, 2004. "The Effects of Disability on Labour Force Status in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(4), pages 359-382, December.
  • Handle: RePEc:bla:ausecr:v:37:y:2004:i:4:p:359-382
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    Citations

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    Cited by:

    1. Jones, Melanie K & Mavromaras, Kostas & Sloane, Peter J & Wei, Zhang (NILS), 2011. "NILS Working paper no 176. Disability and job mismatches in the Australian labour market," NILS Working Papers 26074, National Institute of Labour Studies.
    2. Umut Oguzoglu, 2016. "Disability and Multi-State Labour Force Choices with State Dependence," The Economic Record, The Economic Society of Australia, vol. 92(296), pages 28-46, March.
    3. Lixin Cai & Guyonne Kalb, 2007. "Health status and labour force status of older working-age Australian men," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 10(4), pages 227-252.
    4. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, "undated". "A sequential model for older workers’ labor transitions after a health shock," Working Papers 2005-23, FEDEA.
    5. Deborah A. Cobb-Clark & Steve Stillman, 2006. "The Retirement Expectations of Middle-Aged Individuals," CEPR Discussion Papers 540, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    6. Cain Polidano & Ha Vu, 2012. "Labour market impacts from disability onset," ANU Working Papers in Economics and Econometrics 2012-583, Australian National University, College of Business and Economics, School of Economics.
    7. Mavromaras, Kostas & Polidano, Cain, 2011. "Improving the Employment Rates of People with Disabilities through Vocational Education," IZA Discussion Papers 5548, Institute of Labor Economics (IZA).
    8. D.P. Doessel & Ruth F.G. Williams, 2011. "Disabled people's living standards: filling a policy vacuum," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(4), pages 341-357, March.
    9. Cain Polidano, 2013. "Impacts of Demand-Driven Reforms on Access to Vocational Education and Training for People with Disability," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(3), pages 369-378, September.
    10. Umut Oguzoglu, 2010. "Dynamics of work limitation and work in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 656-669, June.
    11. Alam, Khorshed & Mamun, Shamsul Arifeen Khan, 2016. "The relationship between labour force status and educational attainment: Evidence from a system of simultaneous equations model," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 55-65.
    12. Jones, Melanie K. & Mavromaras, Kostas & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute of Labor Economics (IZA).
    13. Massimiliano Agovino & Antonio Garofalo & Katia Marchesano, 2018. "The effects of employment promotion measures on labour market participation of disabled people: the case of Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 135-155, January.
    14. Mavromaras, Kostas & Polidano, Cain, 2011. "NILS Working paper no 165. Improving the employment rates of people with disabilities through vocational education," NILS Working Papers 26068, National Institute of Labour Studies.
    15. Stefanescu, Razvan & Dumitriu, Ramona & Nistor, Costel, 2012. "Policies to encourage the employment of people with disabilities: case of Romania," MPRA Paper 41637, University Library of Munich, Germany, revised 20 Mar 2012.
    16. Massimiliano Agovino & Agnese Rapposelli, 2017. "Macroeconomic impact of flexicurity on the integration of people with disabilities into the labour market. A two-regime spatial autoregressive analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 307-334, January.
    17. Patrick Laplagne & Maurice Glover & Anthony Shomos, 2007. "Effects of Health and Education on Labour Force Participation," Staff Working Papers 0704, Productivity Commission, Government of Australia.
    18. Productivity Commission, 2006. "The Role of Non-Traditional Work in the Australian Labour Market," Research Papers 0601, Productivity Commission, Government of Australia.
    19. Melanie Jones, 2009. "Disability, employment and earnings: an examination of heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 43(8), pages 1001-1017.

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