Wage differentials and disability across Europe: Discrimination and/or lower productivity?


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The authors measure wage discrimination against disabled persons after controlling for unobserved disability-related productivity differences. Using data for 11 European countries from the European Community Household Panel (1995–2001), they estimate wage equations for persons with disabilities hampering them in daily activities, for those not hampered, and for non-disabled people. Most countries showed no relevant wage differential against disabled workers not so hampered, compared with non-disabled workers. Where it existed, it related mainly to low productivity characteristics, not wage discrimination. However, compared with non-disabled workers, disabled workers hampered in daily activities suffered from low productivity characteristics and wage discrimination.