abstract: 'Purpose The purpose of this paper is to quantify the labor market

  outcomes of people with disabilities (PwD) in Indonesia and compares

  them to people without disabilities. It first studies the labor force

  participation of PwD before examining the large and persistent wage gaps

  they face. It explores whether these wage gaps are explained by

  differences in productivity, a distinction which has important

  implications for policies addressing these gaps.

  Design/methodology/approach The analysis is based on the Indonesian

  Family Life Survey Wave 5, which includes unique questions allowing for

  several definitions of disability. Multinomial logistic regression is

  used to study differences in type of employment for PwD. Wage gaps are

  estimated and corrected for selection using propensity score matching,

  supported by a Heckman selection model and Oaxaca-Blinder decomposition.

  Comparisons with other physically disadvantaged subgroups and the

  analysis of heterogeneity by job requirements and sector of work explore

  whether productivity gaps help explain wage gaps. Findings PwD generally

  have lower unconditional labor force participation, but disparities

  largely disappear when controlling for characteristics. Moreover,

  patterns vary depending on whether the measure of disability used

  depends on prior medical diagnosis. PwD that do not require prior

  diagnosis tend to work in more vulnerable employment. When they are

  employed for wages, people with these types of disabilities face lower

  wages, up to 22\% lower. Meanwhile, (surprisingly) those with medically

  diagnosed conditions face no difference or a wage premium. This paper

  finds compelling evidence that, where a wage penalty exists, a

  substantial part is unexplained by observable characteristics.

  Originality/value Previous literature on disability has been mostly

  based on studies of high-income economies. This paper extends the

  literature to Indonesia, which differs from high-income contexts due to

  lack of mental healthcare resources and assistive technologies, as well

  as weaker rule of law. It provides unique insights based on types of

  disability and the salient dimensions of disability in the workplace. It

  also provides evidence that productivity differences do not explain the

  wage gap.'
affiliation: 'Caron, L (Corresponding Author), Columbia Univ, New York, NY 10027 USA.

  Caron, Laura, Columbia Univ, New York, NY 10027 USA.'
author: Caron, Laura
author-email: lkc38@georgetown.edu
author_list:
- family: Caron
  given: Laura
da: '2023-09-28'
doi: 10.1108/IJM-01-2020-0022
earlyaccessdate: NOV 2020
eissn: 1758-6577
files: []
issn: 0143-7720
journal: INTERNATIONAL JOURNAL OF MANPOWER
keywords: Disability; Wages; Employment
keywords-plus: LABOR-MARKET DISCRIMINATION; HEALTH; PEOPLE; MEN
language: English
month: JUL 8
number: '5'
number-of-cited-references: '61'
orcid-numbers: Caron, Laura/0000-0001-5450-1159
pages: 866-888
papis_id: bf57d81cf79f023dbf629777bbdea96a
ref: Caron2021disabilityemployment
times-cited: '0'
title: 'Disability, employment and wages: evidence from Indonesia'
type: article
unique-id: WOS:000592315700001
usage-count-last-180-days: '1'
usage-count-since-2013: '13'
volume: '42'
web-of-science-categories: Industrial Relations \& Labor; Management
year: '2021'