The labor market experience of workers with disabilities : the ADA and beyond

244 Pages·2003·1.95 MB·English

by  Julie L Hotchkiss

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