Dokumentart(en): Zeitschriftenbeitrag Forschungsergebnis Online-Publikation
Titel der Veröffentlichung: Disability onset and labor market outcomes

Disability onset and labor market outcomes

This article analyzes the individual-level effects of disability onset on labor market outcomes using novel administrative data from Germany. Combining propensity score matching techniques with an event-study design, we find lasting negative impacts on employment and wages.

One important mechanism is transitions to nonemployment after disability onset: the number of nonemployment days of the newly disabled increases by 36 days per year after one year and by 55 days after five years compared to the control group.

For those who stay in employment, working part-time and switching to less physically or psychosocially demanding jobs are important adjustment paths. The negative labor market effects of disability onset are more pronounced for severely disabled, older, and low-skilled individuals.