Labor Markets, Rationality, and Workers with Disabilities

Labor Markets, Rationality, and Workers with Disabilities
Author: Michael Ashley Stein
Publisher:
Total Pages: 0
Release: 2000
Genre:
ISBN:

Empirical studies of post-ADA employment effects foreground a phenomenon that is puzzling. Although analyses suggest that employing workers with disabilities can be cost effective, and despite a burgeoning economy in which the unemployment rate for most categories of workers has plummeted, unemployment of working age individuals with disabilities appears not to have similarly diminished. From the point of view defined by scholars applying the neoclassical labor market paradigm to Title I, the clearest explanation of this phenomenon would seem to be that the studies reporting the cost effectiveness of employing the disabled are incorrect (even if only overstated). Following from this explication is the conclusion that selecting workers with disabilities over nondisabled workers is an inefficient practice. In what follows, I examine and assess the arguments made by proponents of the view that the inefficiency of employing workers with disabilities is a deterrent to their inclusion in the labor market. If these arguments are sound, then rational market forces appear to be inexorably at work to attenuate the strategy embodied by Title I of the ADA. To the contrary, however, I will identify a market failure that prevents certain employers from reaching rational labor market decisions by creating a "taste for discrimination" in which the costs of including people with disabilities in a workforce are perceived as being greater than they really are. Further, I will propose an improved manner for assessing the efficiency of employing workers with disabilities and consider what this method implies regarding the rationality of Title I's strategy. Finally, I will show that the failure of the existing neoclassical economic model, as well as the Title I critiques that rely on it, is attributable at least in part to societal misconceptions about people with disabilities being built into the model's assumptions. That is, far from being neutral or objective, these critiques sanction and perpetuate the very irrational biases the ADA was designed to correct.

Law, Economics and Accommodations in the Internal Labor Market

Law, Economics and Accommodations in the Internal Labor Market
Author: Seth D. Harris
Publisher:
Total Pages: 0
Release: 2007
Genre:
ISBN:

This article joins the debate over whether the Americans with Disabilities Act's (ADA) accommodation mandate contributes to the decline in the employment rate among working-age people with disabilities. This debate pits a rational choice view of employers and accommodations against a discriminatory choice view. Rational choice scholars suggest that the ADA's mandate that employers provide reasonable accommodations to workers with disabilities makes these workers more expensive than workers without disabilities. Given the choice between equally productive workers, these scholars expect rational employers to hire the less costly worker -- that is, the worker without a disability. In sum, the ADA's accommodation mandate makes each unit of labor supplied by workers with disabilities more costly and, therefore, employers demand less of it. This article does not critique the rational choice position. Rather, it joins the debate in support of the discriminatory choice view of the relationship between accommodations costs and the employment rate of working-age people with disabilities. Several empirical studies have found that accommodations frequently impose no added cost and, when they have a cost, are inexpensive. Most important, they found that the benefits employers derive from accommodations frequently outweigh their costs - that is, accommodations benefit employers as well as their employees with disabilities. These studies' implicit message is that the low and declining employment rate among working-age people with disabilities cannot be blamed on the ADA's accommodation mandate or, more precisely, the costs of the accommodations it requires. The cause must lie elsewhere, perhaps with irrational, discriminatory choices made by employers who refuse to hire workers with disabilities. This article provides the theory and analysis which explain the results of these empirical studies. It discusses why accommodating employees with disabilities often imposes no costs on the employers providing accommodations and why accommodations may, in appropriate circumstances, yield net benefits for those employers. The analysis relies on internal labor market theory which is a labor economics theory premised on the understanding that barriers to competition can increase the efficiency of the relationships between employers and employees. This article argues that employers' accommodations and employees' impairments add competitive barriers which increase the efficiency of relationships between employers and their employees with disabilities. Accommodations and workers' impairments tighten the bonds between the employer and the employee and thereby make possible a range of cost cutting and productivity-enhancing behaviors that yield larger dividends for the employer. Thus, the cost of an accommodation is not the only factor that is relevant to determining whether an employer will benefit from providing an accommodation to an incumbent employee with an impairment. The willingness of the parties to seize the opportunity to make their relationship more productive and cost efficient - an opportunity created by the accommodation and impairment - is a critical factor in determining whether an employer benefits from accommodating an employee with an impairment.

The Social Dynamics of Labor Market Inclusion

The Social Dynamics of Labor Market Inclusion
Author: Lena Strindlund
Publisher: Linköping University Electronic Press
Total Pages: 116
Release: 2020-11-16
Genre:
ISBN: 9179297900

Labor market inclusion is a complex assignment that takes place through a dynamic interaction between unemployed individuals from vulnerable groups, several authority actors and employers. The overall aim of this thesis was to explore the social dynamics of labor market inclusion, with a particular focus on integration, from the perspectives of employers and authority actors. Three empirical studies have been conducted focusing on different perspectives and integration challenges, using various forms of qualitative methods and theoretical approaches. Study I was a qualitative phenomenographic interview study of employers’ perspectives on labor market inclusion and intersectoral integration. The study showed that employers’ views are multifaceted and can be categorized as constrained, independent, and conditional, and can be understood through a complex internal relationship between conceived individual-, workplace- and authority-related aspects in relation to the themes of trust, contribution, and support (paper I). Study II was a two-year longitudinal case study of an interorganizational integration project, focusing on the authority actors’ perspectives. Through ethnographic fieldwork and a practice-theory approach, two divergent rationalities (an empowerment rationality and a coordinating rationality) were identified within the project organization, and four central concepts were highlighted – communication, trust, structure, and steering – contributing to a collapse in integration (paper II). The dysfunctional group processes were further analyzed with the theory of negative effects of social capital and shadow organizing, summarized as three social dynamics: insulation, homogenization, and escalating commitment (paper III). Study III was a one-year longitudinal case study of a municipal intraorganizational integration project focusing on the perspectives of both authority actors and municipal employers. This study combined ethnographic field work with the theory of social representations, which visualized three different representations among the different professional groups – individual-, employer-, and political-oriented – which contributed to creating tensions within the project, identified as incomprehension, power struggles, expectation gaps, and distrust (paper IV). By studying two labor market inclusion projects through shadow organizing, the thesis has revealed a complex and dynamic interplay between the various views of the actors involved, as well as social processes within the project organizations and organizational aspects, referred to as social dynamics. These social dynamics constitute the key concepts in this thesis, contributing understanding about how integration and organization work within labor market inclusion projects, or rather, what makes them fail. Three social dynamics were identified: multiple and conflicting views, grouping processes, and power struggles. Greater knowledge and awareness of these complex and social dynamics of labor market inclusion may contribute to better preparedness when organizing integration projects. The results suggest that by identifying and addressing the multiple views characterizing integration projects and not letting incomprehension dominate, the destructive social dynamics may not be given as much space, or may even be avoided, which may stimulate a willingness to integrate rather than the opposite.

The Decline in Employment of People with Disabilities

The Decline in Employment of People with Disabilities
Author: David C. Stapleton
Publisher: W.E. Upjohn Institute
Total Pages: 448
Release: 2003
Genre: Political Science
ISBN: 0880992603

Topics covered include changes in the nature of work, rising health care expenditures, changing disability population, the American with Disabilities Act, social security disability insurance.

The Labor Market Effects of Disability Hiring Quotas

The Labor Market Effects of Disability Hiring Quotas
Author: Christiane Szerman
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

People with disabilities are underemployed across the world. With the goal of increasing their representation, more than 100 countries have established quota regulations requiring firms to hire people with disabilities. This paper studies the implications of enforcing modest disability hiring quotas for workers and firms. Using the introduction of a reform in Brazil that enhanced enforcement of a new hiring quota regulation, my market-level analysis finds that people with disabilities in local labor markets more exposed to the reform experienced larger increases in employment and earnings. To explore the margins along which firms respond to the quota scheme, I leverage variation in enforcement across firms. This analysis reveals three key adjustment margins. First, firms tend to comply with the quota by hiring workers with disabilities into low-paying, less skilled jobs. Second, consistent with statistical discrimination, workers with disabilities hired prior to the quota experience reduced wage growth and promotion rates. Third, the quota does not come at a cost to workers without disabilities in terms of wages or employment, or to firms in terms of closure. Using the compliance decision of firms to the quota, I estimate that the marginal worker with disabilities hired under the quota has a marginal revenue product close to their wage. Through the lens of a model of enforcement of hiring quotas with imperfect compliance, I show that the policy generates aggregate welfare gains. My findings demonstrate that, in labor markets under imperfect competition, mandating modest increases in employment for the disadvantaged can promote redistribution and improve welfare.

Disability and Labor Market Outcomes in the United States

Disability and Labor Market Outcomes in the United States
Author: Julia Aziz Bennett
Publisher:
Total Pages: 35
Release: 2009
Genre:
ISBN:

Disabled individuals have long faced social and physical barriers to entering the U.S. labor force. The 1990 Americans with Disabilities Act (ADA), a key piece of civil rights legislation for the disabled community, aimed to curb the discrimination in hiring and employment practices, and to improve labor market outcomes for disabled workers. This study seeks to investigate the link between disabilities and the social ability to be equally successful as non-disabled individuals in the U.S. labor market, particularly examining the relationships between disability, educational attainment, and labor market outcomes. Using disability supplementary data from the January 2009 Current Population Survey produced by the Bureau of Labor Statistics, this study finds a substantial and statistically significant negative impact of having a disability on the social ability to secure equal wage rates in the job marketplace: workers with a disability, on average, earned approximately 21 percent less in weekly wages than their non-disabled counterparts, holding other factors constant. When incorporating the interactive effects of disability on education, the effect of education on wages is also conditioned by the fact that disability status affects the level of education, and this relationship is statistically significant. These findings support the existing body of literature on disability in the United States in suggesting that the ADA is simply not sufficient in leveling the proverbial playing field for employed individuals whose disabilities require actual accommodation. Significant areas of further research using this data would include executing comparisons amongst disability types and labor market outcomes; a better understanding of disability discrimination and social handicaps could result refinements and improvements of both ADA policy and inclusion programs to mitigate this added burden on disabled individuals.

Disability and Work

Disability and Work
Author: Richard V. Burkhauser
Publisher:
Total Pages: 152
Release: 1982
Genre: Business & Economics
ISBN:

Disabled workers, social cost, social policy, USA - rights of the disabled, employment quota, disability benefits, vocational rehabilitation programmes, sheltered employment. References, statistical tables.