Estimating the income loss of disabled individuals: the case of Spain

In this paper, we present a theoretical model along with an empirical model to identify the effects of disability on wages. From the theoretical model, we derive the hypothesis that only the temporary component of the wage gap, which is due to assimilation costs, will diminish over time, whereas the...

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Detalles Bibliográficos
Autores: Cervini-Plá, Maria, Silva, Jose I., Vall-Castelló, Judit
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2016
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:10230/36416
Acceso en línea:http://hdl.handle.net/10230/36416
http://dx.doi.org/10.1007/s00181-015-1019-7
Access Level:acceso abierto
Palabra clave:Disabled workers
Earnings gap
Matching techniques
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spelling Estimating the income loss of disabled individuals: the case of SpainCervini-Plá, MariaSilva, Jose I.Vall-Castelló, JuditDisabled workersEarnings gapMatching techniquesIn this paper, we present a theoretical model along with an empirical model to identify the effects of disability on wages. From the theoretical model, we derive the hypothesis that only the temporary component of the wage gap, which is due to assimilation costs, will diminish over time, whereas the permanent element, which is due to the productivity loss after the disabling condition, will in fact persist. We test this theoretical hypothesis using an exogenous disability shock (accident) and combine propensity score matching with a difference-in-differences method to account for observed and unobserved time-constant differences. In all our specifications, we find that the reduction in wages for the disabled is between 274 and 308 euros per month, and this represents 19–22 % of the average wage of a disabled worker. This gap, however, is more than offset when we count disability benefits and wages collectively as income. As predicted in the theoretical model, we observe that around 40 % of the initial wage gap between disabled and non-disabled individuals is reversed once the transitory drop in productivity disappears. However, we also observe a constant wage gap that remains over time and that corresponds to the permanent fall in productivity predicted by the theoretical model (60 % of the initial wage gap).José I. Silva and Judit Vall acknowledged financial support from the Spanish Ministry of Economy and Competitiveness thought grant ECO2012-31081.Springer201920192016info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfapplication/pdfhttp://hdl.handle.net/10230/36416http://dx.doi.org/10.1007/s00181-015-1019-7reponame:Recercat. Dipósit de la Recerca de Catalunyainstname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)InglésEmpirical Economics. 2016 Sep:51(2):809-29.info:eu-repo/grantAgreement/ES/3PN/ECO2012-31081© Springer The final publication is available at Springer via http://dx.doi.org/10.1007/s00181-015-1019-7info:eu-repo/semantics/openAccessoai:recercat.cat:10230/364162026-05-29T05:05:01Z
dc.title.none.fl_str_mv Estimating the income loss of disabled individuals: the case of Spain
title Estimating the income loss of disabled individuals: the case of Spain
spellingShingle Estimating the income loss of disabled individuals: the case of Spain
Cervini-Plá, Maria
Disabled workers
Earnings gap
Matching techniques
title_short Estimating the income loss of disabled individuals: the case of Spain
title_full Estimating the income loss of disabled individuals: the case of Spain
title_fullStr Estimating the income loss of disabled individuals: the case of Spain
title_full_unstemmed Estimating the income loss of disabled individuals: the case of Spain
title_sort Estimating the income loss of disabled individuals: the case of Spain
dc.creator.none.fl_str_mv Cervini-Plá, Maria
Silva, Jose I.
Vall-Castelló, Judit
author Cervini-Plá, Maria
author_facet Cervini-Plá, Maria
Silva, Jose I.
Vall-Castelló, Judit
author_role author
author2 Silva, Jose I.
Vall-Castelló, Judit
author2_role author
author
dc.subject.none.fl_str_mv Disabled workers
Earnings gap
Matching techniques
topic Disabled workers
Earnings gap
Matching techniques
description In this paper, we present a theoretical model along with an empirical model to identify the effects of disability on wages. From the theoretical model, we derive the hypothesis that only the temporary component of the wage gap, which is due to assimilation costs, will diminish over time, whereas the permanent element, which is due to the productivity loss after the disabling condition, will in fact persist. We test this theoretical hypothesis using an exogenous disability shock (accident) and combine propensity score matching with a difference-in-differences method to account for observed and unobserved time-constant differences. In all our specifications, we find that the reduction in wages for the disabled is between 274 and 308 euros per month, and this represents 19–22 % of the average wage of a disabled worker. This gap, however, is more than offset when we count disability benefits and wages collectively as income. As predicted in the theoretical model, we observe that around 40 % of the initial wage gap between disabled and non-disabled individuals is reversed once the transitory drop in productivity disappears. However, we also observe a constant wage gap that remains over time and that corresponds to the permanent fall in productivity predicted by the theoretical model (60 % of the initial wage gap).
publishDate 2016
dc.date.none.fl_str_mv 2016
2019
2019
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10230/36416
http://dx.doi.org/10.1007/s00181-015-1019-7
url http://hdl.handle.net/10230/36416
http://dx.doi.org/10.1007/s00181-015-1019-7
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Empirical Economics. 2016 Sep:51(2):809-29.
info:eu-repo/grantAgreement/ES/3PN/ECO2012-31081
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:Recercat. Dipósit de la Recerca de Catalunya
instname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
instname_str Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
reponame_str Recercat. Dipósit de la Recerca de Catalunya
collection Recercat. Dipósit de la Recerca de Catalunya
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