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Differential labour market impacts from disability onset.

Cain Polidano¹, Ha Vu

¹Melbourne Institute of Applied Economic and Social Research, University of Melbourne, Parkville, Victoria, Australia.

Health Economics

|December 19, 2013

Summary

Disability onset significantly reduces employment, particularly full-time roles, for up to four years. Individuals lacking post-school qualifications face greater challenges finding work and rely more on income support.

Keywords:

disability employment transitions

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Area of Science:

Labor Economics
Disability Studies
Social Policy

Background:

Disability onset can lead to significant socioeconomic challenges.
Understanding the long-term labor market consequences is crucial for policy development.

Purpose of the Study:

To estimate the causal labor market impacts of disability onset.
To analyze these impacts by gender, age, and education level.
To assess impacts up to four years post-onset.

Main Methods:

Utilized longitudinal data from the Household Income and Labour Dynamics Australia (HILDA) survey.
Employed difference-in-difference propensity score matching techniques.
Analyzed employment, full-time employment, and income support status.

Main Results:

Lasting negative impacts on overall and full-time employment were observed.
Reduced transition into full-time employment was a key factor, not just downshifting.
Individuals without post-school qualifications showed greater vulnerability, increased unemployment, and reliance on income support.

Conclusions:

Disability onset has persistent adverse effects on labor market participation.
Educational attainment is a significant factor in mitigating these impacts.
Targeted support for vulnerable groups, especially those without qualifications, is essential.