Publications on Disabilities & Employment

Growing fiscal pressures and increasing life expectancy have prompted calls to raise retirement ages. Some fear this change might harm long-career, lower-wage workers. Tying retirement benefit eligibility to years of service might protect low-wage workers who start their careers early. But higher disability rates and greater employment volatility could offset lower-wage workers’ early labor force starts. Using survey data matched to administrative records, we describe how work histories vary by gender, education, and other characteristics. We find that years of service are not likely to effectively protect the lowest-wage workers, as those with the least education also work the least.

About one-quarter of workers age 51 to 55 in 1992 developed health-related work limitations and about one-fifth were laid off from their jobs before age 62. Although late-career health and employment shocks often derail retirement savings plans, Social Security’s disability insurance, spouse and survivor benefits, and progressive benefit formula provide important protections. In fact, health shocks increase Social Security's lifetime value, primarily because the system’s disability insurance allows some disabled workers to collect benefits before age 62. However, if the system’s disability insurance program did not exist, the onset of health-related work limitations would substantially reduce Social Security wealth.

This paper analyzes how mental health problems impede low-income mothers' ability to work and how health insurance improves access to mental health treatment services. According to data from the 2002 National Survey of America's Families, low-income mothers in poor mental health are significantly less likely to work and to work full time than those without these problems. Low-income mothers with public or private health insurance are significantly more likely to receive treatment than those without insurance. Mental health problems are an important barrier to work among low-income women, and access to treatment could be improved through increased health insurance coverage.

This report provides a systematic review of recent research (primarily since 2002) related to employment of people with disabilities. It also identifies limitations and gaps in this research. The report reviews research in a variety of areas including supply-side factors influencing employment, employer attitudes and practices, labor market organization, work accommodations, progression of disability benefits and disability management, impact of public policy on employment, and vocational services interventions.

Wide variation in states’ welfare policies and needy recipients’ access to local services pose special challenges to low-income parents who already have employment barriers.