Disability, Employment and Earnings: An Examination of Heterogeneity

Abstract

This paper uses information from an ad-hoc module on disability in the 2002 UK Labour Force Survey to identify the heterogeneity that exists within the disabled group and examine its impact on labour market outcomes. After controlling for a range of personal characteristics, the type, severity, duration and cause of the disability are found to be important determinants of employment, but there is less evidence to support the influence of within group heterogeneity on earnings.