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Estimating the impact of disability onset on employment

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  • Jones, Melanie K.
  • McVicar, Duncan

Abstract

This paper examines the impact of disability onset on the probability of employment using an underexplored longitudinal dataset for Britain. It contrasts estimates based on a control group drawn from those not experiencing disability onset – a common approach in the literature – with estimates based on a control group drawn from those who do experience disability onset, but one year after the treatment group. Compared to the non-disabled control group, the control group of later-onsetters is likely to be more similar to the treatment group in terms of unobservables, with the resulting estimates therefore more plausibly interpreted as causal. Using this control group we estimate that the probability of employment falls by 11 percentage points in the year of disability onset. The equivalent estimate using the control group drawn from those not experiencing onset is about fifty percent larger. The employment effects of disability onset are also shown to be larger for those with lower qualification levels, consistent with weaker attachment to the labour market.

Suggested Citation

  • Jones, Melanie K. & McVicar, Duncan, 2020. "Estimating the impact of disability onset on employment," Social Science & Medicine, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:socmed:v:255:y:2020:i:c:s0277953620302203
    DOI: 10.1016/j.socscimed.2020.113001
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    References listed on IDEAS

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    1. Baumberg, Ben & Jones, Melanie & Wass, Victoria, 2015. "Disability prevalence and disability-related employment gaps in the UK 1998–2012: Different trends in different surveys?," Social Science & Medicine, Elsevier, vol. 141(C), pages 72-81.
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    8. Meyer, Bruce D. & Mok, Wallace K.C., 2019. "Disability, earnings, income and consumption," Journal of Public Economics, Elsevier, vol. 171(C), pages 51-69.
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    Cited by:

    1. Chandola, Tarani & Rouxel, Patrick, 2021. "The role of workplace accommodations in explaining the disability employment gap in the UK," Social Science & Medicine, Elsevier, vol. 285(C).
    2. Chiara Mussida & Dario Sciulli, 2024. "Poverty, work intensity, and disability: evidence from European countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(9), pages 1605-1624, December.
    3. Ercolani, Marco G. & Lazarova, Emiliya, 2024. "The UK Disability Discrimination Act 2005: Consequences for the education and employment of older children," Economics of Education Review, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Disability; Employment; Local labour force survey; Propensity score matching;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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