IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp2649.html
   My bibliography  Save this paper

Integrating Severely Disabled Individuals into the Labour Market: The Austrian Case

Author

Listed:
  • Humer, Brigitte

    (affiliation not available)

  • Wuellrich, Jean-Philippe

    (University of Zurich)

  • Zweimüller, Josef

    (University of Zurich)

Abstract

We study the impact of the Austrian Employment Act for the Disabled which grants extended employment protection, requires a hiring quota for firms, and subsidizes the employment of severely disabled (SD) workers. Using a large sample of eligible individuals we compare workers before and after acquiring legal SD-status. Unsurprisingly, we find that holding SD-status is associated with lower employment and earnings. However, workers holding a job when acquiring legal SD-status have substantially better subsequent employment prospects after SD-award than before. In contrast, workers who do not hold a job at the date of SD-entry do dramatically worse after SD-award than before. This suggests that employment protection legislation places substantial firing costs on firms and has a major impact on the decisions of firms to hire disabled workers.

Suggested Citation

  • Humer, Brigitte & Wuellrich, Jean-Philippe & Zweimüller, Josef, 2007. "Integrating Severely Disabled Individuals into the Labour Market: The Austrian Case," IZA Discussion Papers 2649, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2649
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp2649.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard V. Burkhauser & Mary C. Daly, 1998. "Disability and work: the experiences of American and German men," Economic Review, Federal Reserve Bank of San Francisco, pages 17-29.
    2. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528, Elsevier.
    3. Michael Lechner & Rosalia Vazquez-Alvarez, 2003. "The Effect of Disability on Labour Market Outcomes in Germany: Evidence from Matching," University of St. Gallen Department of Economics working paper series 2003 2003-20, Department of Economics, University of St. Gallen.
    4. Kathleen Beegle & Wendy A. Stock, 2003. "The Labor Market Effects of Disability Discrimination Laws," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    5. Bell, David & Heitmueller, Axel, 2009. "The Disability Discrimination Act in the UK: Helping or hindering employment among the disabled?," Journal of Health Economics, Elsevier, vol. 28(2), pages 465-480, March.
    6. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.
    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. Marjorie L. Baldwin & William G. Johnson, "undated". "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Working Papers 9715, East Carolina University, Department of Economics.
    9. David H. Autor & Mark G. Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 71-96, Summer.
    10. 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.
    11. Zweimüller, Josef & Lalive, Rafael & Wuellrich, Jean-Philippe, 2009. "Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach," CEPR Discussion Papers 7373, C.E.P.R. Discussion Papers.
    12. Burkhauser, Richard V. & Butler, J. S. & Kim, Yang Woo, 1995. "The importance of employer accommodation on the job duration of workers with disabilities: A hazard model approach," Labour Economics, Elsevier, vol. 2(2), pages 109-130, June.
    13. Christine Jolls & J.J. Prescott, 2004. "Disaggregating Employment Protection: The Case of Disability Discrimination," NBER Working Papers 10740, National Bureau of Economic Research, Inc.
    14. Oecd, 1992. "Employment Policies for People with Disabilities: Report by an Evaluation Panel," OECD Labour Market and Social Policy Occasional Papers 8, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marie, Olivier & Vall Castello, Judit, 2012. "Measuring the (income) effect of disability insurance generosity on labour market participation," Journal of Public Economics, Elsevier, vol. 96(1), pages 198-210.
    2. Daniela-Emanuela Danacica, 2023. "Unemployment Of Highly Educated Disabled Individuals In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 45-61, February.
    3. Rafael Lalive & Jean-Philippe Wuellrich & Josef Zweimüller, 2009. "Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach," NRN working papers 2009-11, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    4. Nabanita Datta Gupta & Mona Larsen & Lars Brink Thomsen, 2013. "Do wage subsidies for disabled workers result in deadweight loss? – evidence from the Danish Flexjob scheme," Economics Working Papers 2013-24, Department of Economics and Business Economics, Aarhus University.
    5. Gustavo de Souza, 2020. "Employment and Welfare Effects of the Quota for Disabled Workers in Brazil," Working Paper Series WP 2023-11, Federal Reserve Bank of Chicago.
    6. Marie, Olivier & Vall Castello, Judit, 2012. "Measuring the (income) effect of disability insurance generosity on labour market participation," Journal of Public Economics, Elsevier, vol. 96(1), pages 198-210.
    7. Rodríguez Álvarez, Vanesa, 2012. "El empleo de las personas con discapacidad en la gran recesión: ¿son los Centros Especiales de Empleo una excepción?/The employment of people with disabilities in the great recession: are the Sheltere," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 237-260, Abril.

    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. Wuellrich, Jean-Philippe, 2010. "The effects of increasing financial incentives for firms to promote employment of disabled workers," Economics Letters, Elsevier, vol. 107(2), pages 173-176, May.
    2. Vall Castello, Judit, 2012. "Promoting employment of disabled women in Spain; Evaluating a policy," Labour Economics, Elsevier, vol. 19(1), pages 82-91.
    3. Braakmann, Nils, 2008. "Wirkungen der Beschäftigungspflicht schwerbehinderter Arbeitnehmer : Erkenntnisse aus der Einführung des "Gesetzes zur Bekämpfung der Arbeitslosigkeit Schwerbehinderter" (Effects of the obli," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 9-24.
    4. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    5. 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.
    6. Braakmann, Nils, 2008. "Wirkungen der Beschäftigungspflicht schwerbehinderter Arbeitnehmer : Erkenntnisse aus der Einführung des "Gesetzes zur Bekämpfung der Arbeitslosigkeit Schwerbehinderter" (Effects of the obli," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 9-24.
    7. Zweimüller, Josef & Lalive, Rafael & Wuellrich, Jean-Philippe, 2009. "Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach," CEPR Discussion Papers 7373, C.E.P.R. Discussion Papers.
    8. Braakmann, Nils, 2008. "Wirkungen der Beschäftigungspflicht schwerbehinderter Arbeitnehmer : Erkenntnisse aus der Einführung des "Gesetzes zur Bekämpfung der Arbeitslosigkeit Schwerbehinderter" (Effects of the obli," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 9-24.
    9. 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.
    10. 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.
    11. Melanie Jones, 2009. "Disability, employment and earnings: an examination of heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 43(8), pages 1001-1017.
    12. Lamichhane, Kamal & Sawada, Yasuyuki, 2013. "Disability and returns to education in a developing country," Economics of Education Review, Elsevier, vol. 37(C), pages 85-94.
    13. Melanie Jones, 2016. "Disability and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 253-253, April.
    14. 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.
    15. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche & Yann Videau, 2019. "An evaluation of the 1987 French Disabled Workers Act: better paying than hiring," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(4), pages 597-610, June.
    16. Kim, Soojin & Rhee, Serena, 2018. "Measuring the effects of employment protection policies: Theory and evidence from the Americans with Disabilities Act," Labour Economics, Elsevier, vol. 54(C), pages 116-134.
    17. Stéphane Gregoir & Tristan‐Pierre Maury, 2013. "The Impact Of Social Housing On The Labour Market Status Of The Disabled," Health Economics, John Wiley & Sons, Ltd., vol. 22(9), pages 1124-1138, September.
    18. Joaquín Mayorga, 2019. "The labour effect of a Disability Act. Longitudinal evidence from Chile," Working Papers wp478, University of Chile, Department of Economics.
    19. Patrick Hullegie & Pierre Koning, 2015. "Employee Health and Employer Incentives," Tinbergen Institute Discussion Papers 15-109/V, Tinbergen Institute.
    20. Nick Drydakis, 2010. "Health impairments and labour market outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(5), pages 457-469, October.

    More about this item

    Keywords

    disability; employment protection;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp2649. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.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.