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The impact of work-limiting disabilities on earnings and income mobility

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  • Nicholas A. Jolly

Abstract

This article uses the 1968--2007 waves of the Panel Study of Income Dynamics (PSID) to examine how work-limiting disabilities influence the intragenerational earnings and income mobility of individuals. The results show that work-limiting disabilities increase the probability of downward mobility for several years after onset. Furthermore, the probability of being in the bottom portions of the distributions increases significantly, not only during the year of onset but also for at least 10 years afterwards. These results are more pronounced for those individuals suffering from a disability that is more chronic or severe in nature. Income from spousal earnings and government transfer payments offers some protection against disability's adverse effect, with more protection being provided to those who are more chronically disabled.

Suggested Citation

  • Nicholas A. Jolly, 2013. "The impact of work-limiting disabilities on earnings and income mobility," Applied Economics, Taylor & Francis Journals, vol. 45(36), pages 5104-5118, December.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:36:p:5104-5118
    DOI: 10.1080/00036846.2013.818212
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    Cited by:

    1. Jason Fletcher & Katie M. Jajtner, 2021. "Intergenerational health mobility: Magnitudes and Importance of Schools and Place," Health Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 1648-1667, July.
    2. Jones, Melanie K. & Mavromaras, Kostas & Sloane, Peter J. & Wei, Zhang, 2015. "The Dynamic Effect of Disability on Work and Subjective Wellbeing in Australia," IZA Discussion Papers 9609, Institute of Labor Economics (IZA).
    3. Jolly, Nicholas A. & Wagner, Kathryn L., 2023. "Work-limiting disabilities and earnings volatility," Labour Economics, Elsevier, vol. 81(C).
    4. Katie M Jajtner, 2020. "Work‐Limiting Disability and Intergenerational Economic Mobility," Social Science Quarterly, Southwestern Social Science Association, vol. 101(5), pages 2001-2016, September.
    5. Maria Cervini-Pla & Judit Vall Castelló, 2018. "The earnings and employment losses before entering the disability system," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1111-1128, November.
    6. Nicholas A. Jolly & Nikolaos Theodoropoulos, 2023. "Health shocks and spousal labor supply: an international perspective," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 973-1004, April.
    7. Wong, Sandy & McLafferty, Sara L. & Planey, Arrianna M. & Preston, Valerie A., 2020. "Disability, wages, and commuting in New York," Journal of Transport Geography, Elsevier, vol. 87(C).

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