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Differential Labour Market Impacts from Disability Onset

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  • Cain Polidano
  • Ha Vu

Abstract

We estimate the causal labour market impacts of disability onset by gender, age and education levels up to 4 years after onset using longitudinal data from the Household Income and Labour Dynamics Australia survey and difference‐in‐difference propensity score matching techniques. We find lasting negative impacts on employment, especially full‐time employment, which is due more to reduced movement into full‐time employment than downshifting from full‐time to part‐time work following onset. Those without post‐school education qualifications are particularly vulnerable to the impacts of onset and are more likely to be out of work and on income support than those with qualifications up to 4 years after onset, due in part because they have greater difficulty adjusting. Copyright © 2013 John Wiley & Sons, Ltd.

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  • Cain Polidano & Ha Vu, 2015. "Differential Labour Market Impacts from Disability Onset," Health Economics, John Wiley & Sons, Ltd., vol. 24(3), pages 302-317, March.
    • Handle: RePEc:wly:hlthec:v:24:y:2015:i:3:p:302-317
    DOI: 10.1002/hec.3017
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    2. L'Horty, Yannick & Mahmoudi, Naomie & Petit, Pascale & Wolff, François-Charles, 2022. "Is disability more discriminatory in hiring than ethnicity, address or gender? Evidence from a multi-criteria correspondence experiment," Social Science & Medicine, Elsevier, vol. 303(C).
    3. 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).
    4. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    5. Demianova, Anna & Lukiyanova, Anna, 2016. "The impact of disability status on labor supply in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 44, pages 50-74.
    6. Allison Milner & Yamna Taouk & George Disney & Zoe Aitken & Jerome Rachele & Anne Kavanagh, 2018. "Employment predictors of exit from work among workers with disabilities: A survival analysis from the household income labour dynamics in Australia survey," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-14, December.
    7. Melanie K Jones & Duncan McVicar, 2022. "The dynamics of disability and benefit receipt in Britain [Large sample properties of matching estimators for average treatment effects]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 936-957.
    8. Kavanagh, Anne M. & Aitken, Zoe & Baker, Emma & LaMontagne, Anthony D. & Milner, Allison & Bentley, Rebecca, 2016. "Housing tenure and affordability and mental health following disability acquisition in adulthood," Social Science & Medicine, Elsevier, vol. 151(C), pages 225-232.
    9. Tien Thanh, Pham & Bao Duong, Pham, 2022. "The economic burden of non-communicable diseases on households and their coping mechanisms: Evidence from rural Vietnam," World Development, Elsevier, vol. 151(C).
    10. Takasaki, Yoshito, 2020. "Impacts of disability on poverty: Quasi-experimental evidence from landmine amputees in Cambodia," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 85-107.
    11. Tianxin Pan & Michael Palmer & Ajay Mahal & Peter Annear & Barbara McPake, 2020. "The long‐run effects of noncommunicable disease shocks," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1549-1565, December.
    12. Jones, Melanie K. & McVicar, Duncan, 2020. "Estimating the impact of disability onset on employment," Social Science & Medicine, Elsevier, vol. 255(C).
    13. Collischon, Matthias & Hiesinger, Karolin & Pohlan, Laura, 2023. "Disability and Labor Market Performance," IZA Discussion Papers 16100, Institute of Labor Economics (IZA).
    14. Yoshito Takasaki, 2019. "Disability and Poverty: Landmine Amputees in Cambodia," CIRJE F-Series CIRJE-F-1118, CIRJE, Faculty of Economics, University of Tokyo.

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