The effect of disability on labour market outcomes

dc.contributor.advisorMlatsheni, Cecil
dc.contributor.authorOngere, Ruth Boyani
dc.date.accessioned2020-02-20T10:33:44Z
dc.date.available2020-02-20T10:33:44Z
dc.date.issued2019
dc.date.updated2020-02-14T08:30:34Z
dc.description.abstractThis study estimated the effect of disability, disability type and disability grants on labour force participation, employment and wages using NIDS data from Wave 1 to Wave 4. Data was analysed as a panel to account for the effects over time. A pooled OLS, a random effects and a fixed effects model were applied on the panel dataset to explain the effects of disability, disability type and disability grants on labour market outcomes. To determine which of these models was the most appropriate, specification tests were performed. The Hausman test revealed that the fixed effects model was the most appropriate model in explaining the panel dataset. Results from the fixed effects model indicated that disability had no effect on labour force participation and employment but had a negative effect on wages, as wages were likely to decrease by 8% after an individual became disabled. Disability grants had disincentive effects on labour supply as grant recipients were 12% less likely to participate in the labour market and 8% less likely to be employed. Disability type was found to have no effect on labour force participation, employment and wages except for individuals with sight/hearing and speech disabilities as their wages were likely to decrease by 14% after individuals developed problems with sight, hearing or speech. Results from the pooled OLS and random effects model however found significant effects of disability, disability type and disability grants on all labour market outcomes. Despite estimation biases that do not account for self-selection or the lack of correlation between unobservable characteristics and independent variables, random effects models allow for the generalization of results beyond the sample and may be of interest to policy makers. This however requires further investigation using multilevel models that correct for selection bias. This study concluded that disability had negative effects on labour market outcomes particularly on wages, demonstrating that PWDs remain economically disadvantaged. The implementation of policies that prioritize equity for PWDs in workplaces is therefore recommended.
dc.identifier.apacitationOngere, R. B. (2019). <i>The effect of disability on labour market outcomes</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/31199en_ZA
dc.identifier.chicagocitationOngere, Ruth Boyani. <i>"The effect of disability on labour market outcomes."</i> ., ,Faculty of Commerce ,School of Economics, 2019. http://hdl.handle.net/11427/31199en_ZA
dc.identifier.citationOngere, R. 2019. The effect of disability on labour market outcomes.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Ongere, Ruth Boyani AB - This study estimated the effect of disability, disability type and disability grants on labour force participation, employment and wages using NIDS data from Wave 1 to Wave 4. Data was analysed as a panel to account for the effects over time. A pooled OLS, a random effects and a fixed effects model were applied on the panel dataset to explain the effects of disability, disability type and disability grants on labour market outcomes. To determine which of these models was the most appropriate, specification tests were performed. The Hausman test revealed that the fixed effects model was the most appropriate model in explaining the panel dataset. Results from the fixed effects model indicated that disability had no effect on labour force participation and employment but had a negative effect on wages, as wages were likely to decrease by 8% after an individual became disabled. Disability grants had disincentive effects on labour supply as grant recipients were 12% less likely to participate in the labour market and 8% less likely to be employed. Disability type was found to have no effect on labour force participation, employment and wages except for individuals with sight/hearing and speech disabilities as their wages were likely to decrease by 14% after individuals developed problems with sight, hearing or speech. Results from the pooled OLS and random effects model however found significant effects of disability, disability type and disability grants on all labour market outcomes. Despite estimation biases that do not account for self-selection or the lack of correlation between unobservable characteristics and independent variables, random effects models allow for the generalization of results beyond the sample and may be of interest to policy makers. This however requires further investigation using multilevel models that correct for selection bias. This study concluded that disability had negative effects on labour market outcomes particularly on wages, demonstrating that PWDs remain economically disadvantaged. The implementation of policies that prioritize equity for PWDs in workplaces is therefore recommended. DA - 2019 DB - OpenUCT DP - University of Cape Town KW - Econmic Development LK - https://open.uct.ac.za PY - 2019 T1 - The effect of disability on labour market outcomes TI - The effect of disability on labour market outcomes UR - http://hdl.handle.net/11427/31199 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/31199
dc.identifier.vancouvercitationOngere RB. The effect of disability on labour market outcomes. []. ,Faculty of Commerce ,School of Economics, 2019 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/31199en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjectEconmic Development
dc.titleThe effect of disability on labour market outcomes
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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