The effect of disability on labour market outcomes in Germany : evidence from matching

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Title: The effect of disability on labour market outcomes in Germany : evidence from matching
Authors: Vazquez-Alvarez, Rosalia
Lechner, Michael
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Date: Feb-2003
Abstract: If labour market policies aimed at people with disabilities are effective, we should observe no significant difference in labour market outcomes between disable and non-disable individuals. This paper examines the impact of disability status on labour market outcomes using matching methods associated with treatment effect techniques for program evaluation. Such techniques avoid model misspecification and account for the common support problem, thus improving the identification strategy of alternative techniques that also select on observables. Using several waves from the German Socio-Economic Panel (GSOEP, 1994-2000) we estimate the impact of disability on both labour market participation and labour earnings. We find no significant difference in either of these two measures of labour market outcomes between disable and non-disable. Due to the construction of the treated and comparison groups, our results imply that (in Germany) disability labour market policies are effective at achieving their aim.
Type of material: Working Paper
Publisher: University College Dublin. Institute for the Study of Social Change (Geary Institute)
Series/Report no.: ISSC Discussion Paper Series; WP 2003 / 03
Keywords: Treatment effectEvaluation of disability policiesHealth statusCausalityMatching on the propensity scoreLabour market outcomes
Subject LCSH: People with disabilities--Employment
Wages--People with disabilities
Manpower policy--Germany
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers

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