Differential Labour Market Impacts from Disability Onset

Authors

  • Cain Polidano,

    Corresponding author
    1. Melbourne Institute of Applied Economic and Social Research, University of Melbourne, Parkville, Victoria, Australia
    • Correspondence to: Melbourne Institute of Applied Economic and Social Research, University of Melbourne, Parkville, Victoria 3010, Australia. E-mail: cainp@unimelb.edu.au

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  • Ha Vu

    1. Graduate School of Business, Deakin University, Burwood, Victoria, Australia
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Abstract

We estimate the causal labour market impacts of disability onset by gender, age and education levels up to 4 years after onset using longitudinal data from the Household Income and Labour Dynamics Australia survey and difference-in-difference propensity score matching techniques. We find lasting negative impacts on employment, especially full-time employment, which is due more to reduced movement into full-time employment than downshifting from full-time to part-time work following onset. Those without post-school education qualifications are particularly vulnerable to the impacts of onset and are more likely to be out of work and on income support than those with qualifications up to 4 years after onset, due in part because they have greater difficulty adjusting. Copyright © 2013 John Wiley & Sons, Ltd.

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