Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
The differential earnings and income effects of involuntary job loss on workers with disabilities
() and Marcus Eliason
Abstract: People with disabilities, both in Sweden and elsewhere,
are consistently found to face considerable difficulties on the labour
market. In this study we have investigated the differential impact of
involuntary job loss, on earnings and income, if being disabled. Our main
findings are that earnings of those with and without disabilities began to
diverge already several years prior to job loss because of a much larger
incidence of longer periods of absence due to either sickness or
rehabilitation. The seemingly permanent earnings differential following job
loss seems to have been a consequence of much more of the job losers with
disabilities not returning to employment but instead becoming disability
retirees. Although the earnings differential experienced by the job seekers
with disabilities was considerable during the post-job loss period, a
majority of the difference was replaced by public social insurances.
Keywords: Disability; job loss; unemployment; (follow links to similar papers)
JEL-Codes: J14; J64; J68; (follow links to similar papers)
32 pages, October 28, 2014
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- This paper is forthcoming as:
Angelov, Nikolay and Marcus Eliason, 'The differential earnings and income effects of involuntary job loss on workers with disabilities - Evidence from Sweden', Labour.
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