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Economic outcomes of working-age people with disabilities over the business cycle: an examination of the 1980s and 1990s

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We examine the rate of employment and the household income of the working-age population (aged 25-61) with and without disabilities over the business cycles of the 1980s and 1990s using data from the March Current Population Survey and the National Health Interview Survey. In general, we find that while the employment of working-age men and women with and without disabilities exhibited a procyclical trend during the 1980s business cycle, this was not the case during the 1990s expansion. During the 1990s, the employment of working-age men and women without disabilities continued to be procyclical, but the employment rates of their counterparts with disabilities declined over the entire 1990s business cycle. Although increases in disability transfer income replaced a significant fraction of their lost earnings, the household income of men and women with disabilities fell relative to the rest of the population over the decade.

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  • Richard V. Burkhauser & Mary C. Daly & Andrew J. Houtenville & Nigar Nargis, 2001. "Economic outcomes of working-age people with disabilities over the business cycle: an examination of the 1980s and 1990s," Working Paper Series 2001-07, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfwp:2001-07
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    1. Rebecca M. Blank & David Card, 1993. "Poverty, Income Distribution, and Growth: Are They Still Connected," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2), pages 285-340.
    2. Richard V. Burkhauser & Amy Crews Cutts & Mary C. Daly & Stephen P. Jenkins, 1999. "Testing the significance of income distribution changes over the 1980s business cycle: a cross‐national comparison," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 253-272, May.
    3. Thomas DeLeire, 2000. "The Wage and Employment Effects of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 693-715.
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    5. Note: For best results & the figures should be printed on a non-Postscript printer. Hoynes & H., "undated". "The Employment, Earnings, and Income of Less-Skilled Workers over the Business Cycle," Institute for Research on Poverty Discussion Papers 1199-99, University of Wisconsin Institute for Research on Poverty.
    6. Duncan, G.J. & Daly, M.C. & McDonough, P. & Williams, D.R., 2002. "Optimal indicators of socioeconomic status for health research," American Journal of Public Health, American Public Health Association, vol. 92(7), pages 1151-1157.
    7. Lynn Karoly & Gary Burtless, 1995. "Demographic change, rising earnings inequality, and the distribution of personal well-being, 1959–1989," Demography, Springer;Population Association of America (PAA), vol. 32(3), pages 379-405, August.
    8. Burkhauser, Richard V. & Crews, Amy D. & Daly, Mary C., 1997. "Recounting winners and losers in the 1980s: A critique of income distribution measurement methodology," Economics Letters, Elsevier, vol. 54(1), pages 35-40, January.
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    1. Mari Rege & Kjetil Telle & Mark Votruba, 2012. "Social Interaction Effects in Disability Pension Participation: Evidence from Plant Downsizing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1208-1239, December.
    2. Bichaka Fayissa & Shah Danyal & J.S. Butler, 2011. "The Impact of Education on Health Status: Evidence from Longitudinal Survey Data," Working Papers 201101, Middle Tennessee State University, Department of Economics and Finance.
    3. Richard V. Burkhauser & Mary C. Daly, 2002. "Policy Watch: U.S. Disability Policy in a Changing Environment," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 213-224, Winter.

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