2023-09-28 14:46:10 +00:00
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abstract: 'Purpose The purpose of this paper is to quantify the labor market
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outcomes of people with disabilities (PwD) in Indonesia and compares
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them to people without disabilities. It first studies the labor force
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participation of PwD before examining the large and persistent wage gaps
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they face. It explores whether these wage gaps are explained by
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differences in productivity, a distinction which has important
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implications for policies addressing these gaps.
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Design/methodology/approach The analysis is based on the Indonesian
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Family Life Survey Wave 5, which includes unique questions allowing for
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several definitions of disability. Multinomial logistic regression is
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used to study differences in type of employment for PwD. Wage gaps are
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estimated and corrected for selection using propensity score matching,
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supported by a Heckman selection model and Oaxaca-Blinder decomposition.
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Comparisons with other physically disadvantaged subgroups and the
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analysis of heterogeneity by job requirements and sector of work explore
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whether productivity gaps help explain wage gaps. Findings PwD generally
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have lower unconditional labor force participation, but disparities
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largely disappear when controlling for characteristics. Moreover,
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patterns vary depending on whether the measure of disability used
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depends on prior medical diagnosis. PwD that do not require prior
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diagnosis tend to work in more vulnerable employment. When they are
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employed for wages, people with these types of disabilities face lower
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wages, up to 22\% lower. Meanwhile, (surprisingly) those with medically
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diagnosed conditions face no difference or a wage premium. This paper
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finds compelling evidence that, where a wage penalty exists, a
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substantial part is unexplained by observable characteristics.
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Originality/value Previous literature on disability has been mostly
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based on studies of high-income economies. This paper extends the
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literature to Indonesia, which differs from high-income contexts due to
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lack of mental healthcare resources and assistive technologies, as well
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as weaker rule of law. It provides unique insights based on types of
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disability and the salient dimensions of disability in the workplace. It
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also provides evidence that productivity differences do not explain the
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wage gap.'
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affiliation: 'Caron, L (Corresponding Author), Columbia Univ, New York, NY 10027 USA.
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Caron, Laura, Columbia Univ, New York, NY 10027 USA.'
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author: Caron, Laura
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author-email: lkc38@georgetown.edu
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author_list:
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- family: Caron
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given: Laura
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da: '2023-09-28'
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doi: 10.1108/IJM-01-2020-0022
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earlyaccessdate: NOV 2020
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eissn: 1758-6577
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files: []
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issn: 0143-7720
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journal: INTERNATIONAL JOURNAL OF MANPOWER
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keywords: Disability; Wages; Employment
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keywords-plus: LABOR-MARKET DISCRIMINATION; HEALTH; PEOPLE; MEN
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language: English
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month: JUL 8
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number: '5'
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number-of-cited-references: '61'
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orcid-numbers: Caron, Laura/0000-0001-5450-1159
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pages: 866-888
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papis_id: bf57d81cf79f023dbf629777bbdea96a
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ref: Caron2021disabilityemployment
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times-cited: '0'
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title: 'Disability, employment and wages: evidence from Indonesia'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000592315700001
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usage-count-last-180-days: '1'
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usage-count-since-2013: '13'
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volume: '42'
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web-of-science-categories: Industrial Relations \& Labor; Management
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year: '2021'
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