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Disability and Disadvantage: Selection, onset and duration effects
Stephen P Jenkins and John A. Rigg
November 2003
Paper No' CASE 074:
Full Paper (pdf)

JEL Classification: J15;J18;J21

Tags: disability; selection; disadvantage; work; employment

This paper analyses the economic disadvantage experienced by disabled persons of working-age using data from the British Household Panel Survey. We argue that there are three sources of disadvantage among disabled persons: pre-existing disadvantage among those who become disabled (a ¿selection¿ effect), the effect of disability onset itself, and the effects associated with remaining disabled post-onset. We show that employment rates fall with disability onset, and continue to fall the longer a disability spell lasts, whereas average income falls sharply with onset but then recovers subsequently (though not to pre-onset levels).