Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20203
Authors: 
Lechner, Michael
Vazquez-Alvarez, Rosalia
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion paper series 967
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 are fairly robust with respect to model misspecification and account for the common support problem, thus improving the identification and estimation strategy. Using the German Socio Economic Panel (1984-2001) we estimate the impact of disability on labour market participation and different income measures. We find that those who are not disable experience higher employment rates and higher earnings relative to those who have become disable. This difference is almost always significant for all labour market outcomes considered.
Subjects: 
treatment effect
evaluation of disability policies
health status
causality
matching on the propensity score
labour market outcomes
JEL: 
I12
C14
J23
I18
C13
Document Type: 
Working Paper

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