IDEAS home Printed from https://ideas.repec.org/a/bla/brjirl/v60y2022i1p3-31.html
   My bibliography  Save this article

The total compensation gap, wage gap and benefit gap between workers with and without a disability

Author

Listed:
  • Kevin F. Hallock
  • Xin Jin
  • Michael Waldman

Abstract

The wage gap between workers with and without a disability has been widely documented. However, wages and salaries account for less than 70% of the total hourly cost of compensation for an average U.S. worker. In this study, we construct a measure of total compensation by linking the American Community Survey to a restricted‐access version of the Employer Cost for Employee Compensation database, which contains detailed benefit measures for the years 2008–2014. After controlling for selection into full‐time employment and other observed characteristics, we find that the percentage total compensation gap between full‐time male workers with and without a disability is substantially larger than the percentage wage and salary gap. The opposite pattern is observed for full‐time female workers. Our results suggest that considering only wage and salary may mask the true gaps in total compensation from employment. We also document a persistent benefits gap between workers with and without a disability. We discuss possible explanatory factors for the observed patterns in total compensation and benefit gaps.

Suggested Citation

  • Kevin F. Hallock & Xin Jin & Michael Waldman, 2022. "The total compensation gap, wage gap and benefit gap between workers with and without a disability," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 3-31, March.
    • Handle: RePEc:bla:brjirl:v:60:y:2022:i:1:p:3-31
    DOI: 10.1111/bjir.12607
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/bjir.12607
    Download Restriction: no
    File URL: https://libkey.io/10.1111/bjir.12607?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lex Borghans & Bart H. H. Golsteyn & James J. Heckman & Huub Meijers, 2009. "Gender Differences in Risk Aversion and Ambiguity Aversion," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 649-658, 04-05.
    2. Marjorie L. Baldwin & William G. Johnson, 2006. "A Critical Review of Studies of Discrimination Against Workers with Disabilities," Chapters, in: William M. Rodgers III (ed.), Handbook on the Economics of Discrimination, chapter 5, Edward Elgar Publishing.
    3. Stijn Baert, 2016. "Wage subsidies and hiring chances for the disabled: some causal evidence," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 71-86, January.
    4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    5. Morley Gunderson & Douglas Hyatt, 1996. "Do Injured Workers Pay for Reasonable Accommodation?," ILR Review, Cornell University, ILR School, vol. 50(1), pages 92-104, October.
    6. Michele Campolieti & Harry Krashinsky, 2006. "Disabled Workers and Wage Losses: Some Evidence from Workers with Occupational Injuries," ILR Review, Cornell University, ILR School, vol. 60(1), pages 120-138, October.
    7. Douglas Kruse & Lisa Schur & Sean Rogers & Mason Ameri, 2018. "Why Do Workers with Disabilities Earn Less? Occupational Job Requirements and Disability Discrimination," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 798-834, December.
    8. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
    9. Joni Hersch, 1991. "Male-Female Differences in Hourly Wages: The Role of Human Capital, Working Conditions, and Housework," ILR Review, Cornell University, ILR School, vol. 44(4), pages 746-759, July.
    10. Melanie Jones & Kostas Mavromaras & Peter Sloane & Zhang Wei, 2014. "Disability, job mismatch, earnings and job satisfaction in Australia," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(5), pages 1221-1246.
    11. Melanie K. Jones & Peter J. Sloane, 2010. "Disability and Skill Mismatch," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 101-114, September.
    12. Marjorie L. Baldwin & Chung Choe, 2014. "Wage Discrimination Against Workers with Sensory Disabilities," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 101-124, January.
    13. Gruber, Jonathan, 1994. "The Incidence of Mandated Maternity Benefits," American Economic Review, American Economic Association, vol. 84(3), pages 622-641, June.
    14. Eric Solberg & Teresa Laughlin, 1995. "The Gender Pay Gap, Fringe Benefits, and Occupational Crowding," ILR Review, Cornell University, ILR School, vol. 48(4), pages 692-708, July.
    15. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259, Elsevier.
    16. Mason Ameri & Lisa Schur & Meera Adya & F. Scott Bentley & Patrick McKay & Douglas Kruse, 2018. "The Disability Employment Puzzle: A Field Experiment on Employer Hiring Behavior," ILR Review, Cornell University, ILR School, vol. 71(2), pages 329-364, March.
    17. Jonathan Gruber & Alan B. Krueger, 1991. "The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers' Compensation Insurance," NBER Chapters, in: Tax Policy and the Economy, Volume 5, pages 111-144, National Bureau of Economic Research, Inc.
    18. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    19. Price V. Fishback & Shawn Everett Kantor, 1995. "Did Workers Pay for the Passage of Workers' Compensation Laws?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 713-742.
    20. William G. Johnson & James Lambrinos, 1985. "Wage Discrimination against Handicapped Men and Women," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 264-277.
    21. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    22. Jones, Melanie K., 2006. "Is there employment discrimination against the disabled?," Economics Letters, Elsevier, vol. 92(1), pages 32-37, July.
    23. Jones, Melanie K. & Latreille, Paul L., 2010. "Disability and earnings: Are employer characteristics important?," Economics Letters, Elsevier, vol. 106(3), pages 191-194, March.
    24. Lex Borghans & Bart H.H. Golsteyn & James J. Heckman & Huub Meijers, 2009. "Gender Differences in Risk Aversion and Ambiguity," Working Papers 200903, Geary Institute, University College Dublin.
    25. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    26. Marjorie L. Baldwin & William G. Johnson, 2000. "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 548-566, January.
    27. Ravaud, Jean-François & Madiot, Béatrice & Ville, Isabelle, 1992. "Discrimination towards disabled people seeking employment," Social Science & Medicine, Elsevier, vol. 35(8), pages 951-958, October.
    28. Rosen, Sherwin, 1987. "The theory of equalizing differences," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 12, pages 641-692, Elsevier.
    29. Greg J. Duncan, 1976. "Earnings Functions and Nonpecuniary Benefits," Journal of Human Resources, University of Wisconsin Press, vol. 11(4), pages 462-483.
    30. Alan Krueger & Douglas Kruse, 1995. "Labor Market Effects of Spinal Cord Injuries in the Dawn of the Computer Age," NBER Working Papers 5302, National Bureau of Economic Research, Inc.
    31. Chung Choe & Marjorie L. Baldwin, 2017. "Duration of disability, job mismatch and employment outcomes," Applied Economics, Taylor & Francis Journals, vol. 49(10), pages 1001-1015, February.
    32. Brooks Pierce, 2001. "Compensation Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1493-1525.
    33. Marjorie L. Baldwin & Chung Choe, 2014. "Re-examining the models used to estimate disability-related wage discrimination," Applied Economics, Taylor & Francis Journals, vol. 46(12), pages 1393-1408, April.
    34. repec:fth:prinin:349 is not listed on IDEAS
    35. Baldwin, Marjorie & Johnson, William G, 1992. "Estimating the Employment Effects of Wage Discrimination," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 446-455, August.
    36. Wankyo Chung, 2003. "Fringe Benefits and Inequality in the Labor Market," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 517-529, July.
    37. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    38. Melanie K. Jones, 2008. "Disability and the labour market: a review of the empirical evidence," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 35(5), pages 405-424, September.
    39. Alan Krueger & Douglas Kruse, 1995. "Labor Market Effects of Spinal Cord Injuries in the Dawn of the Computer Age," Working Papers 728, Princeton University, Department of Economics, Industrial Relations Section..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Douglas Kruse & Lisa Schur & Sean Rogers & Mason Ameri, 2018. "Why Do Workers with Disabilities Earn Less? Occupational Job Requirements and Disability Discrimination," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 798-834, December.
    2. Mason Ameri & Lisa Schur & Meera Adya & F. Scott Bentley & Patrick McKay & Douglas Kruse, 2018. "The Disability Employment Puzzle: A Field Experiment on Employer Hiring Behavior," ILR Review, Cornell University, ILR School, vol. 71(2), pages 329-364, March.
    3. Chung Choe, 2013. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," Korean Economic Review, Korean Economic Association, vol. 29, pages 211-233.
    4. Simonetta Longhi & Cheti Nicoletti & Lucinda Platt, 2012. "Interpreting Wage Gaps of Disabled Men: The Roles of Productivity and of Discrimination," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 931-953, January.
    5. repec:mpr:mprres:341e1dba100a4d988613006cb2957100 is not listed on IDEAS
    6. Chung Choe & Marjorie L. Baldwin, 2017. "Duration of disability, job mismatch and employment outcomes," Applied Economics, Taylor & Francis Journals, vol. 49(10), pages 1001-1015, February.
    7. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
    8. Button, Patrick & Walker, Brigham, 2020. "Employment discrimination against Indigenous Peoples in the United States: Evidence from a field experiment," Labour Economics, Elsevier, vol. 65(C).
    9. BALDWIN Marjorie L. & CHOE Chung, 2010. "New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands," LISER Working Paper Series 2010-14, Luxembourg Institute of Socio-Economic Research (LISER).
    10. Jean-Marc Fournier & Isabell Koske, 2012. "The determinants of earnings inequality: evidence from quantile regressions," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 7-36.
    11. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    12. Katie M. Jajtner & Sophie Mitra & Christine Fountain & Austin Nichols, 2020. "Rising Income Inequality Through a Disability Lens: Trends in the United States 1981–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(1), pages 81-114, August.
    13. Borau, Sylvie & Couprie, Hélène & Hopfensitz, Astrid, 2022. "The prosociality of married people: Evidence from a large multinational sample," Journal of Economic Psychology, Elsevier, vol. 92(C).
    14. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," GLO Discussion Paper Series 61, Global Labor Organization (GLO).
    15. Chzhen, Yekaterina & Mumford, Karen, 2011. "Gender gaps across the earnings distribution for full-time employees in Britain: Allowing for sample selection," Labour Economics, Elsevier, vol. 18(6), pages 837-844.
    16. Böheim, René & Himpele, Klemens & Mahringer, Helmut & Zulehner, Christine, 2013. "The distribution of the gender wage gap in Austria : evidence from matched employer-employee data and tax records," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 19-34.
    17. Kaya, Ezgi, 2019. "Gender wage gap across the quantiles:What is the role of firm segregation?," Cardiff Economics Working Papers E2019/7, Cardiff University, Cardiff Business School, Economics Section.
    18. Rahman, Mustafizur & Al-Hasan, Md., 2018. "Male-Female wage gap and informal employment in Bangladesh: A quantile regression approach," MPRA Paper 90131, University Library of Munich, Germany.
    19. Antinyan, Armenak & Burn, Ian & Jones, Melanie K., 2024. "Productivity Signals and Disability-Related Hiring Discrimination: Evidence from a Field Experiment," IZA Discussion Papers 17290, Institute of Labor Economics (IZA).
    20. Hübler, Olaf, 2003. "Geschlechtsspezifische Lohnunterschiede (Gender-specific wage differentials)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 539-559.
    21. Frank M. Fossen, 2012. "Gender differences in entrepreneurial choice and risk aversion -- a decomposition based on a microeconometric model," Applied Economics, Taylor & Francis Journals, vol. 44(14), pages 1795-1812, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:brjirl:v:60:y:2022:i:1:p:3-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.