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A Difficult Cycle: The effect of labor market changes on the employment and program participation of people with disabilities

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Abstract

This paper examines the dynamics behind the employment and program participation trends of workers with disabilities. We find strong evidence that labor market declines induce male workers with disabilities to exit employment and enter the disability programs. However, the evidence only weakly supports the hypothesis that male workers with disabilities are more likely than those without disabilities to lose their jobs in a declining labor market. Rather, those who lose their jobs are much less likely to re-enter employment in later years. Our findings for women with disabilities suggest that adverse labor markets do not have a disproportionately large impact on employment exits, though they do induce program entry.

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2005-10-01

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benefits; charts; data; developmental disabled; disabilities; disability; Disability Employment Research; EDIcat4-DER; disability policy; Disability Programs; disability statistics; disable; disabled; disablement; disabling; earnings; economic; economics; economy; employ; employing; employment; estimates; Federal Insurance Contributions Act; FICA; figures; graphs; Guiding Principles; handicap; handicapped; impairment; information; Insurance; Labor Market; learning disability; limitation; long term disability; maternity leave; mental handicap; mental retardation; numbers; OASDI; Old Age; Survivors and Disability; Old Age; Survivors; and Disability Insurance; paternity leave; physical disability; policies; policy; procedures; public policy; public programs; regulation; retirement; rules; self-employment; short term disability; social security; Social Security; Social Security Disability Insurance; special need; SSDI; SSDI; SSI; statistic; statistics; stats; statute; Supplemental Security Income; work; EDIcat5-DSR

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