The Effect of Disability on Labour Market Outcomes in Germany
Journal
Applied Economics
ISSN
0003-6846
ISSN-Digital
1466-4283
Type
journal article
Date Issued
2011-02-01
Author(s)
Abstract
In this article we analyse the individual effects of becoming disabled on key aspects of labour market outcomes in Germany. The German Socio Economic Panel (1984-2002) collects socio-economic and health data. This data is organized such that the potential problems for such an estimation that may arise from disability not being a random event are considerably reduced. Using matching methods, we find a reduction of individual employment chances of about 9 to 13%, the level depending on the degree of disability. We find no statistically significant evidence for a reduction in income or an increase in unemployment due to disability. We interpret these findings as an indication that the German social security systems appear to successfully mitigate or at least reduce the economic hardship that comes with the event of disability.
Language
English
Keywords
Effect of Disability
Labour Market Outcomes
Germany
HSG Classification
contribution to education
Refereed
Yes
Publisher
Taylor & Francis
Publisher place
London
Volume
43
Number
4
Start page
389
End page
412
Pages
24
Subject(s)
Eprints ID
210582