Disability and Labor Market Performance

Research Seminars: ZEW Research Seminar

The paper presented in this ZEW Research Seminar analyzes the individual effects of disability onset on labor market outcomes using novel administrative data from Germany. Combining propensity score matching techniques with an event-study design, the authors find lasting negative impacts on employment and wages. One important mechanism are transitions to nonemployment after disability onset: the probability to become nonemployed increases by 10 percentage points after one year and by 14 percentage points after five years. For those who stay in employment, working parttime and switching to less physical demanding jobs are important adjustment paths. The negative labor market effects of disability onset are more pronounced for severely disabled, older and low-skilled individuals.

Venue

ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung

People

Laura Pohlan
Junior Research Associate

Laura Pohlan // Institute for Labour Market and Employment Research of the Federal Employment Agency (IAB), Nuremberg

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ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung

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L 7, 1, 68161 Mannheim
  • Room 23