The labor market experience of workers with disabilities : the ADA and beyond PDF
Preview The labor market experience of workers with disabilities : the ADA and beyond
The Labor Market Experience of Workers with Disabilities The ADA and Beyond This Page Intentionally Left Blank The Labor Market Experience of Workers with Disabilities The ADA and Beyond Julie L. Hotchkiss 2003 W.E.UpjohnInstituteforEmploymentResearch Kalamazoo,Michigan LibraryofCongressCataloging-in-PublicationData Hotchkiss,JulieL. Thelabormarketexperienceofworkerswithdisabilities/JulieL. Hotchkiss. p.cm. ISBN0-88099-251-4(pbk.:alk.paper)—ISBN0-88099-252-2 (hardcover:alk.paper) 1.Handicapped—Employment—UnitedStates.2. Handicapped—Employment—Governmentpolicy—UnitedStates.3.Labor market—UnitedStates.4.Discriminationinemployment—Lawand legislation—UnitedStates.5.Handicapped—Legalstatus,laws, etc.—UnitedStates.6.UnitedStates.AmericanswithDisabilitiesAct of1990.I.Title. HD7256.U5H682002 331.5(cid:1)9(cid:1)0973—dc21 2002151811 (cid:1)2003 W.E.UpjohnInstituteforEmploymentResearch 300S.WestnedgeAvenue Kalamazoo,Michigan49007-4686 The facts presented in this study and the observations and viewpoints expressed are the sole responsibility of the authors. They do not necessarily represent positions of theW.E.UpjohnInstituteforEmploymentResearch. CoverdesignbyJ.R.Underhill. IndexpreparedbyNancyHumphreys. PrintedintheUnitedStatesofAmerica. Contents ListofFigures vi ListofTables viii Acknowledgment xi Preface xiii 1 Introduction 1 DisabilityLegislationintheUnitedStates 1 PolicyIssues 3 FocusandStrategyofAnalyses 5 DisabledAmericans 12 SurveyofIncomeandProgramParticipation(SIPP) 15 Notes 18 2 Employment 21 UnconditionalandJointProbabilities 23 ExplainingtheDeclineinLaborForceParticipationRates 27 Pooled,Cross-SectionalAnalysis 30 EvidencefromtheSIPP 34 EmploymentProbabilityandFirmSize 37 Conclusions 43 Notes 44 3 Compensation:WagesandBenefits 49 WageLevels 50 DifferencesinWagesOverTime 51 WageDecomposition 61 BenefitAnalysis 66 Conclusions 70 Notes 72 4 HoursofWork,Distribution,andRepresentation 75 HoursofWork 76 DistributionofWorkers 90 RepresentationofWorkers 95 Conclusions 99 Notes 101 5 Separation,Unemployment,andJobSearch 105 Separation 106 Unemployment 111 v JobSearch 115 Conclusions 120 Notes 121 6 StateversusFederalLegislation 125 ImpactonEmployment 129 ImpactonWages 133 ImpactonHours 137 Conclusions 138 Notes 140 7 ConclusionsandPolicyImplications 141 EmploymentIncentives 143 Education,Training,andJobCharacteristics 147 ScreeningandMatching 151 TheADAandBeyond 152 Notes 154 AppendixA:CPSSampleConstruction 157 AppendixB:SIPPSampleConstruction 159 AppendixC:SupplementalTables 163 AppendixD:StateDisabilityLegislation 179 References 209 TheAuthor 217 Index 219 AbouttheInstitute 229 Figures 1.1 PercentageofSampleandofWorkersintheCPSDataSet IndicatingaWork-LimitingDisability,1981–2000 12 1.2 AverageWeeklyHoursofDisabledandNondisabledWorkers, CPS,1981–2000 15 1.3 PercentageofSampleandofWorkersintheSIPPDataSet IndicatingaWork-LimitingDisability,1986–1997 17 1.4 DistributionofDisabledIndividualsacrossDisabilityType, SIPP,1986–1997 17 vi 2.1 PercentageEmployedofDisabledandNondisabledIndividuals, CPS,1981–2000 22 2.2 ImpactofDisabilityonJointLaborForceParticipationand EmploymentProbabilities,CPS,1981–2000 25 2.3 SeparatePredictionsofEmploymentandLaborForce ParticipationProbabilitiesfortheDisabled,CPS,1987–2000 26 2.4 DistributionofDisabledandNondisabledWorkersacrossFirm Size,CPS,1987–1999 40 2.5 RatioofPredictedEmploymentProbabilitiesforDisabled versusNondisabledWorkersbyFirmSize,CPS,1987–1999 41 3.1 AverageRealHourlyWages,CPS,1981–2000 50 3.2 ObservedandSelectivity-correctedWageDifferentialsandthe CoefficientEffectasPercentageofCorrectedWage Differential,CPS,1981–2000 63 3.3 DifferenceinProportionofNondisabledandDisabledWorkers ReceivingBenefits,CPS,1980–1999 67 3.4 MarginalEffectofDisabilityontheProbabilityofFringe BenefitReceipt,CPS,1987–1999 69 4.1 PercentageofDisabledandNondisabledWorkersThatAre EmployedPart-Time,CPS,1981–2000 77 4.2 ImpactofHavingaDisabilityonBeingEmployedPart-Time, CPS,1981–2000 79 4.3 ImpactofHavingaDisabilityonBeingVoluntarilyEmployed Part-Time,CPS,1981–2000 82 4.4 Full-Time/Part-TimeWageDifferentialsforDisabledand NondisabledWorkers,CPS,1981–2000 90 4.5 DistributionofDisabledandNondisabledWorkersacross OccupationsandIndustries,CPS,2000 91 4.6 DuncanIndicesofDissimilarityacrossOccupationsand Industries,DisabledversusNondisabledandNonwhite versusWhite,CPS,1981–2000 93 4.7 DuncanIndicesofDissimilarityacrossOccupationsand Industries,byTypeofDisability,SIPP,1997 94 4.8 CorrelationCoefficients,ConcentrationofDisabledWorkers andIndustry/OccupationWage,CPS,1981–2000 99 5.1 WeeksSpentLookingforWorkbyDisabilityStatus,CPS, 1980–1999 106 5.2 PercentageofJobSeparationsbyTypeandDisabilityStatus, CPS,1981–2000 108 5.3 MarginalEffectofBeingDisabledontheProbabilityof SeparationType,CPS,1981–2000 110 vii 5.4 ProbabilityofDifferentTypesofUnemploymentbyDisability Status,CPS,1989–2000 113 5.5 AverageSearchSpellLengthDifferentialbetweenUnemployed DisabledandNondisabledSearchers,CPS,1981–2000 116 5.6 PredictedExpectedSearchDurationbyDisabilityStatus,CPS, 1981–2000 118 5.7 PercentageofDisabledandNondisabledSearchersUsingEach SearchStrategy,AveragedoverthePeriod1981–2000,CPS 119 6.1 LaborForceParticipationRatesfortheDisabledandthe Nondisabled,CPS,1981–1991 128 6.2 ProportionofDisabledandNondisabledLaborForce ParticipantsThatAreEmployed,CPS,1981–1991 128 6.3 ProportionofDisabledandNondisabledWorkersThatAre EmployedPart-Time,CPS,1981–1991 137 Tables 1.1 SampleSizesforMergedCPSDataFiles 10 1.2 MeansofSelectDemographicVariablesforDisabledand NondisabledWorkersoverEntireTimePeriod,CPS, 1981–2000 14 1.3 SampleSizesforSIPPDataFiles 16 2.1 LaborForceParticipationandEmploymentBivariateProbit withSelectionResults,CPS,CombinedYears1981–2000 32 2.2 ChangeinMarginalEffectofDisabilityonLaborForce ParticipationandEmploymentProbabilities 33 2.3 LaborForceParticipationandEmploymentBivariateProbit withSelectionResults,SIPPCombinedYears,1986–1997 34 2.4 LaborForceParticipationandEmploymentBivariateProbit withSelectionResultsbyTypeofDisability,SIPPCombined Years,1986–1997 36 2.5 DDDCalculationforAveragePredictedProbabilityof EmploymentbyFirmSize,DisabilityStatus,andacross Time,CPS,1987–1999 42 3.1 OLSSelectivity-CorrectedRegressionResultsforLogReal Wages,acrossDisabilityStatusandADAImplementation, CPS,1984–2000 53 3.2 OLSSelectivity-CorrectedDDRegressionResultsforLogReal Wages,acrossDisabilityStatusandTypeofDisability Status,SIPP,1986–1997 55 viii 3.3 OLSSelectivity-CorrectedRegressionResultsforLogReal Wages,acrossDisabilityStatus,CoveredFirmSize,and ADAImplementation,CPS 59 3.4 ContributionofRegressorstoLogWageDifferentials,Median acrossYears,CPS,1981–2000 65 4.1 EmploymentandPart-TimeEmploymentBivariateProbitwith SelectionResults,CPSCombinedYears,1981–2000 80 4.2 LinearProbability,VoluntaryPart-TimeEmploymentResults, CPSCombinedYears,1981–2000 83 4.3 EmploymentandPart-TimeEmploymentBivariateProbitwith SelectionandLinearProbabilityModelforVoluntaryPart- TimeEmployment,SIPP,1986–1997 86 4.4 EmploymentGrowthRatesforIndustryandOccupational Classifications 97 4.5 MarginalEffectofDisabilityontheProbabilityofEmployment ina‘‘HighGrowth’’OccupationorIndustry,CPS 98 6.1 SummaryofState-LevelDisabilityLegislation 126 6.2 LaborForceParticipationandEmploymentBivariateProbit withSelectionResults,CPS,1981–1991 131 6.3 LogRealWageOLSEstimationwithSelection,CPS, 1981–1991 135 6.4 EmploymentandPart-TimeEmploymentBivariateProbitwith SelectionResults,CPS,1981–1991 139 B.1 SIPPDataStructure 160 B.2 ClassificationofDisabilitiesintheSIPPDataSet 162 C.1 TrendsinthePercentagesofTotalSampleandofWorkers IndicatingaWork-LimitingDisability,CPSCombined OutgoingRotationGroups,1981–2000 165 C.2 PercentagesofDisabledandNondisabledIndividuals Employed,CPS,1981–2000 166 C.3 PredictedJointProbabilityofLaborForceParticipationand EmploymentandPredictedUnconditionalEmployment Probability,byDisabilityStatus,CPS,1981–2000 167 C.4 RelativePredictedProbabilitiesofWorkinginEachFirmSize, CPS,1987–1999 168 C.5 ObservedandSelectivity-CorrectedWageDifferentials,CPS, 1981–2000 169 C.6 MarginalEffectofBeingDisabledontheProbabilityof Employer-ProvidedHealthInsuranceandofBeingIncluded intheEmployer’sPensionPlan,CPS 170 C.7 ImpactofBeingDisabledontheProbabilityofPart-timeand VoluntaryPart-TimeEmployment,CPS,1981–2000 172 ix
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