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Paper No' CASE 074: | Full paper
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Keywords: disability; selection, disadvantage, work, employment
JEL Classification: J15;J18;J21
Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CASE Papers
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Abstract:This paper analyses the economic disadvantage experienced by disabled persons of working-age using data from the British Household Panel Survey. We argue that there are three sources of disadvantage among disabled persons: pre-existing disadvantage among those who become disabled (a ¿selection¿ effect), the effect of disability onset itself, and the effects associated with remaining disabled post-onset. We show that employment rates fall with disability onset, and continue to fall the longer a disability spell lasts, whereas average income falls sharply with onset but then recovers subsequently (though not to pre-onset levels).
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