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Age and disability: explaining the wage differential.

Brenda Gannon1, Margaret Munley

  • 1Irish Centre for Social Gerontology, National University of Ireland, Galway, Ireland. brenda.gannon@nuigalway.ie

Social Science & Medicine (1982)
|May 26, 2009
PubMed
Summary
This summary is machine-generated.

This study quantifies wage gaps for workers with disabilities in Ireland. Controlling for productivity reveals a lower unexplained wage gap, suggesting reduced discrimination post-legislation.

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Area of Science:

  • Economics
  • Labor Economics
  • Disability Studies

Background:

  • Significant wage gaps persist between disabled and non-disabled workers.
  • Understanding the drivers of these wage gaps is crucial for policy development.
  • Previous research often fails to adequately control for productivity differences.

Purpose of the Study:

  • To estimate the explained and unexplained components of the wage gap for workers with disabilities in Ireland.
  • To provide benchmark estimates for Ireland, comparable to UK data.
  • To analyze wage differentials before and after the Employment Equality Act 1998.

Main Methods:

  • Decomposition of wage differentials across three groups: disabled with limitations, disabled without limitations, and non-disabled.
  • Analysis of data from 1995-2001, with sub-samples pre and post 1998.
  • Controlling for productivity differences to isolate the unexplained wage gap.

Main Results:

  • The unexplained component of the wage gap (upper bound of discrimination) is lower when productivity differences are controlled.
  • Results are comparable to estimates from the United Kingdom.
  • The lower bound of the wage gap is influenced by unobserved factors and selection model validity.

Conclusions:

  • Controlling for productivity significantly reduces the estimated unexplained wage gap.
  • The Employment Equality Act 1998 may have contributed to a reduction in wage discrimination.
  • Further research is needed to fully understand the impact of unobserved heterogeneity and selection bias.