Economics of Disability and Employment: New Developments
Paper Session
Sunday, Jan. 4, 2026 8:00 AM - 10:00 AM (EST)
- Chair: Priyanka Anand, George Mason University
Effects of Vocational Rehabilitation for People Who are Blind or Vision-Impaired
Abstract
This is the first paper in the economics literature to examine the effects of a job training program on the labor market outcomes of people who are blind or vision impaired. To do this, we construct a structural model of participation in vocational rehabilitation and labor market outcomes for people with vision impairments. There are multiple services to choose among, and each has different effects on employment and earnings. We estimate negative effects for most service types, leading to surprisingly low rates of return to VR service receipt.Effects of the Minimum Wage on Employment of Young Adults with Cognitive Disabilities
Abstract
In 2023, over 6.5 million non-institutionalized young working age adults in the U.S. had cognitive disabilities (CDs), defined by the U.S. Census Bureau as having serious difficulty concentrating, remembering, or making decisions. Employment is important for individuals with cognitive disabilities because (1) it provides earnings, structure, identity, and participation in the community, (2) individuals with CDs typically want to work, and (3) because most CDs are present from childhood, most individuals with CDs are disabled over their entire working-age years. The employment rate of individuals with CDs increased from 33% in 2008 to 49% in 2023 but is still far below that for individuals without any disabilities (81% in 2008 and 83% in 2023).During the same time period, there were significant changes in policies relating to minimum wages (MWs) that are particularly relevant for individuals with CDs. These included 276 state-level MW increases, with the average effective MW increasing from $6.62 to $10.49 and the maximum MW more than doubling. Additionally, disability rights groups have successfully lobbied organizations and state legislatures to reduce or abolish the use of sub-MW certificates that allowed firms to hire individuals with disabilities at rates below the MW.
This study estimated the effects of MWs and sub-MWs on employment of individuals with CDs, using data from the American Community Survey (ACS) between 2008 (the first year CD was consistently measured) and 2023 (the most recently available data) and focusing on young adults with CDs ages 21-49. The ACS includes large numbers of state/year observations. We found robust evidence that increases in the MW led to lower rates of employment among individuals with CDs and that the effects were larger in states with low use of the sub-MW compared to states where sub-MWs were more heavily used.
The Disability-Authenticity Dilemma: A Randomized Trial of Responses to Disability Disclosure
Abstract
Background: Should employees with disabilities be their “authentic selves” at work, and if so, how can managers support this? Despite societal gains in disability inclusion, there remains an inherent tradeoff between the freedom to disclose and the potential for stigma-based backlash.Objective: We experimentally explore the risks of disability disclosure by presenting participants with a hypothetical colleague who reveals the details of a disability and gauge the reactions of participants acting in the role of colleagues (Study 1) and of real managers (Study 2).
Methods: Study 1 utilized an experiment with a 3x3x2 design (Disability Type: prosthetic arm, dyslexia, depression; Background Story: none, disability link, job reassurance; Gender: male, female). Quantitative and qualitative items measured general reactions to the email as well as perceptions of work success and trustworthiness. Study 2 surveyed working managers about their current practices with respect to disability disclosure, presented new tools for their use, and measured their likelihood to adopt these. Statistical tests include analyses of variance/t-tests, Chi-squared tests, and cluster analyses.
Results: Participants felt more positively about some disabilities (a prosthetic arm; dyslexia) over others, with mental health (depression) being the most problematic. Ratings did not improve with added reassurance about their skills for and commitment to the job. Managers responded most positively to employee-supporting behaviors over social sharing behaviors.
Conclusions: Mental health disabilities remain the greatest challenge in the realm of disability disclosure, and managers must navigate the outsized reactions to this particular “share” among their employees and signal that disclosure is valued.
Is the Disability Employment Gap Robust Across Countries?
Abstract
In high-income countries, there is a large empirical literature on the disability gap in employment outcomes and their determinants. In low- and middle-income countries (LMICs), the disability gap is expected to be smaller due to limited disability benefit programs for disabled workers. While the evidence for LMICs is limited, an increasing availability of internationally comparable microdata on disability (using the Washington Group Short Set) makes it possible to test whether the disability gap in employment outcomes holds across economies at various levels of development.We contribute to the literature on the disability gap in employment outcomes by leveraging labor force survey and population census data and examining the disability gap (i) in employment rates and (ii) in the percentage of workers in the informal sector in 30 countries in Asia, the Americas and Sub-Saharan Africa.
We find that people with disabilities have lower employment rates than persons without
disabilities in most but not all countries. At the same time, across countries, workers with disabilities are consistently found to be more often in the informal sector compared to their non-disabled counterparts. Next, we analyze cross-country results in disability gaps in employment outcomes to consider if disability gaps are larger in countries at higher development levels. Preliminary results suggest that disability gaps are largest in middle-income countries followed by high-income countries and low-income countries.
Discussant(s)
José Fernandez
,
University of Louisville
John Palatucci
,
Rutgers University
JEL Classifications
- J0 - General
- H8 - Miscellaneous Issues