The Effects of Disability on Earnings in China and the United States
Main Article Content
Keywords
disability policies, wage inequality, employment and disability
Abstract
This paper compares earnings disparities between persons with disabilities and able-bodied persons in the United States and in China, two countries with widely differing public policies regarding employment of persons with disabilities. In doing so, the paper provides readers with a unique comparative perspective on both the nature of disability policies in China and the United States and on the impacts of these policies. Data from the China Household Income Project Survey (CHIPs) and the US Current Population Survey (CPS) are used to estimate earnings equations in China and the US to test the hypothesis that the adverse impacts of disability on earnings differ between the two countries. The disability rates in the two samples are comparable as are the percentage differences in earnings between persons with disabilities and able-bodied persons. However, the estimated impacts of disability on wage and salary incomes are larger in the United States, where disability policy is essentially an anti-discrimination policy than they are in China, where disability policy includes an affirmative action requirement mandating that employers hire a quota of employees with disabilities against a threat of fines and penalties. The analysis has broad implications for understanding how and why anti-discrimination policies may not be enough to narrow earnings gaps between persons with disabilities and the able-bodied.
References
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DeLeire, T. (2001). Changes in wage discrimination against people with disabilities: 1984-93. The Journal of Human Resources, 36(1), 144-158.
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Halvorsen, R. & Palmquist, R. (1980). The interpretation of dummy variables in semilogarithmic equations. American Economic Review, 70 , 474-75.
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Kruse, D. & Schur, L. (2003). Employment of people with disabilities following the ADA. Industrial Relations. 42(1), 31–66.
Lai, D. J., Lee, L. M., & Lee, E. S. (2000). Effects of handicap on life expectancy: The case of China. Public Health, 114, 330-335.
Li, Y., Sun, P., & Zhang, C. (2008). The Status-quo of social security of China's handicapped persons and strategies of perfection. Hebei Academy Journal, 5, 7-13.
Liu, Y., Zhang, F., & Zhang, D. (2007). An investigation report of social economic status of the disabled. Chinese Journal of Special Education, 7, 19-22.
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Pierini, J., Pearson, V., & Wong, Y. (2001). Glorious work: Employment of adults with a learning disability in Guangzhou from the perspective of their parents. Disability and Society, 16(2), 255–272.
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Shang, X. (2000). Bridging the gap between planned and market economies: Employment policies for people with disabilities in two Chinese cities. Disability and Society, 15(1), 135-156.
Shang, X., Fisher, K. R., & Xie, J. (2009). Discrimination against children with disability in China. International Journal of Social Welfare, 1-11.
Shi, L. (2009). Chinese Household Income Project, 2002. ICPSR21741-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2009-08-14. doi:10.3886/ICPSR21741.v1
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Stein, M. (2003). The law and economics of disability accommodations, Duke Law Journal, 53(79), 80-191.
Stone, E. (1996). A law to protect, a law to prevent: Contextualizing disability legislation in China. Disability and Society, 11 (4), 469-483.
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http://www.icpsr.umich.edu/cgibin/SDA/ICPSR/hsda?nacda+03381-0003
Xie, Z., Bo, S., Zhang, X., Liu, M., Zhang, Z., Yang, X., Ji, S., & Wu, Z.L. (2008).
Sampling survey on intellectual disability in 0~6-year-old children in China. Journal of Intellectual Disability Research, 52 (12), 1029-1038.
Xu, J., Wang, M., Xiang, Y., & Hu, X. (2005). Quality of life for people with intellectual disabilities in China: A cross-culture perspectives study. Journal of Intellectual Disability Research, 49(10), 745-749.
Zhao, J., Zhang, B., & Yu, G. (2008). Effects of concealable stigma for learning disabilities. Social Behavior and Personality, 36(9), 1179-1188.
Zhang, J. & Hu, J. (2008). Achievement problem and promotion measure of disabled person’s employment in China. Population Journal, 2, 49-52.
Adams, P. , Hurd, M.D., McFadden, D.L., Merrill, A. & Ribeiro, T. (2003) Healthy, wealthy, and wise? Tests for direct causal paths between health and socioeconomic status. Journal of Econometrics, 112(1), 3-56 doi:10.1016/S0304-4076(02)00145-8
Arrow, K. J. (1998). What has economics to say about racial discrimination? The Journal of Economic Perspectives, 12(2), 91–100.
Becker, G. S. (1957). The economics of discrimination. Chicago: University of Chicago Press.
Bound, J. & Waidmann, T. (2002). Accounting for recent declines in employment rates among the working‐aged men and women with disabilities. Journal of Human Resources, 37(2), 231‐250.
Center for an Accessible Society. (2009). Economics and people with disabilities. Retrieved from http://www.accessiblesociety.org/topics/economics‐employment/
Darity, W. A., Jr. (1995). The international library of critical writing in economics: Economics and discrimination (Vol 1). Aldershot, UK: Edward Elgar Publishing.
Darity, W. A., Jr. & Mason, P.R. (1998). Evidence on discrimination in employment: Codes of color, codes of gender. The Journal of Economic Perspectives, 12(2), 63–90.
Darity, W. A. & Myers, S. Jr. (1998). Persistent disparity: Race and economic inequality in the U.S. since 1945. Northampton, MA: Edward Elgar Publishing
David, S. & Burkhauser, R.V. (Eds.). (2003). The decline in employment of people with disabilities: A policy puzzle. Kalamazoo, MI: W.E. Upjohn Institute.
DeLeire, T. (2000). The wage and employment effects of the Americans With Disabilities Act. Journal of Human Resources, 35(4), 693–715.
DeLeire, T. (2001). Changes in wage discrimination against people with disabilities: 1984-93. The Journal of Human Resources, 36(1), 144-158.
Fisher, K. & Li, J. (2008). Chinese disability independent living policy. Disability and Society, (23) 2, 171-185.
Erickson, W. A. & Lee, C. G. (2005). Disability statistics from the decennial census 2000. Ithaca, NY: Cornell University Rehabilitation Research and Training Center on Disability Demographics and Statistics (StatsRRTC). Retrieved November 23, 2011 from www.disabilitystatistics.org
Erickson, W., Lee, C., & von Schrader, S. (2011). Disability Statistics from the 2009 American Community Survey (ACS). Ithaca, NY: Cornell University Employment and Disability Institute (EDI). Retrieved Nov 19, 2013 from www.disabilitystatistics.org
Erickson, W., Lee, C., & von Schrader, S. (2010). Disability statistics from the 2008 American community survey (ACS). Ithaca, NY: Cornell University Rehabilitation Research and Training Center on Disability Demographics and Statistics (StatsRRTC). Retrieved Nov 23, 2011 from www.disabilitystatistics.org
Guo, M. (1993). Demographic features of people with disabilities in China. Disability, Handicap and Society, 8(2), 211-214.
Halvorsen, R. & Palmquist, R. (1980). The interpretation of dummy variables in semilogarithmic equations. American Economic Review, 70 , 474-75.
Hampton, N. Z. (2001). An evolving rehabilitation service delivery system in the People’s Republic of China. Journal of Rehabilitation, 67(3).
Haveman, R., de Jong, P., & Wolfe, B. (1991). Disability transfers and the work decision of older men. Quarterly Journal of Economics 106(5), 939–949.
Haveman, R. & Barbara W. (2000). The economics of disability and disability policy. Handbook of Health Economics (A. J. Culyer & J. P. Newhouse Eds.), 1 (1) 18: 995‐1051.
Haveman, R., & Wolfe, B. (1990), The economic well‐being of the disabled, 1962–1984. Journal of Human Resources, 25(1): 32–55.
Houtenville, A.J. & Adler, A.F. (2001). Economics of disability research report #4: Estimates of the prevalence of disability, employment rates, and median household size‐adjusted income for people with disabilities aged 18 through 64 in the United States by State, 1980 through 2000. Rehabilitation Research and Training Center for Economic Research on Employment Policy for Persons with Disabilities, Cornell University: Ithaca, NY. Retrieved from http://digitalcommons.ilr.cornell.edu/edicollect/76
Hotchkiss, J. (2004). A closer look at the employment impact of the Americans with Disabilities Act. Journal of Human Resources, 39(4), 887‐911.
Huang, J., Guo, B., & Bricout, J. (2009). From concentration to dispersion- The shift in policy approach to disability employment in China. Journal of Disability Policy Studies, 20(1), 46-54.
International Labor Organization. (2008). Facts on People with Disabilities in China. Retrieved from: http://www.ilo.org/beijing/information-resources/public-information/factsheets/WCMS_142315/lang--en/index.htm.
King, M., Ruggles, S., Alexander, J., Flood, S., Genadek, K., Schroeder, M.B., Trampe, B., & Vick. R. (2010). Integrated Public Use Microdata Series, Current Population Survey: Version 3.0. [Machine-readable database]. Minneapolis: University of Minnesota. (https://www.ipums.org/cps/intro.shtml, retrieved 11/19/2013).
Kohrman, M. (2003). Why am I not disabled? Making state subjects, making statistics in post-Mao China. Medical Anthropology Quarterly, 17(l), 5-24.
Kruse, D. & Schur, L. (2003). Employment of people with disabilities following the ADA. Industrial Relations. 42(1), 31–66.
Lai, D. J., Lee, L. M., & Lee, E. S. (2000). Effects of handicap on life expectancy: The case of China. Public Health, 114, 330-335.
Li, Y., Sun, P., & Zhang, C. (2008). The Status-quo of social security of China's handicapped persons and strategies of perfection. Hebei Academy Journal, 5, 7-13.
Liu, Y., Zhang, F., & Zhang, D. (2007). An investigation report of social economic status of the disabled. Chinese Journal of Special Education, 7, 19-22.
Myers, S. L. & Ding, S. (2009, May). Analysis of income inequality and disability in China. Unpublished manuscript, School of Economics and Management (SEM), Tsinghua University, Beijing, China.
National Center for Health Statistics, Schoenborn, C. A., & M. Marano. (1988). Current estimates from the National Health Interview Survey: United States, 1987. Vital and Health Statistics. Series 10, No. 166. DHHS Pub. No. (PHS) 88–1594. Public Health Service. Washington: U.S. Government Printing Office.
Pearson, V., Wong, Y. & Pierini, J. (2002). The structure and content of social inclusion: Voices of young adults with learning difficulties in Guangzhou. Disability and Society, 17(4), 365-382.
Pierini, J., Pearson, V., & Wong, Y. (2001). Glorious work: Employment of adults with a learning disability in Guangzhou from the perspective of their parents. Disability and Society, 16(2), 255–272.
Salkever, D. & Sorkin, A. (eds.). (2000). Research in human capital and development, volume XIII: The economics of disability. Stamford, CT: JAI Press.
Salkever, D. & Domino, M. (2000). Within group ‘structural’ tests of labor-market discrimination: A study of persons with serious disabilities. Research in Human Capital and Development, Volume XIII, The Economics of Disability (in D. Salkever and A. Sorkin Eds), Stamford, CT: JAI Press.
Sec. 12112. Discrimination of AMERICANS WITH DISABILITIES ACT OF 1990, AS AMENDED). http://www.ada.gov/pubs/adastatute08.htm, retrieved 11/19/2013.
Shang, X. (2000). Bridging the gap between planned and market economies: Employment policies for people with disabilities in two Chinese cities. Disability and Society, 15(1), 135-156.
Shang, X., Fisher, K. R., & Xie, J. (2009). Discrimination against children with disability in China. International Journal of Social Welfare, 1-11.
Shi, L. (2009). Chinese Household Income Project, 2002. ICPSR21741-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2009-08-14. doi:10.3886/ICPSR21741.v1
Statistics Bureau of China. (2006). Report on Major Statistics of the Second National Sampling Survey for Disability in China. Beijing, China.
Statistics Bureau of China. (1987). Report on major statistics of the first national sampling survey for disability in China. Beijing, China.
Stratford, B. & Ng, H. (2000). People with disabilities in China: Changing outlook- new solutions- growing problems. International Journal of Disability, Development and Education, 47(1), 8-14.
Stein, M. (2003). The law and economics of disability accommodations, Duke Law Journal, 53(79), 80-191.
Stone, E. (1996). A law to protect, a law to prevent: Contextualizing disability legislation in China. Disability and Society, 11 (4), 469-483.
Thornton, R. & Innes, J. (1989). Interpreting semilogarithmic regression coefficients in labor research. Journal of Labor Research, 10 (4), 443-447.
U.S. Department of Justice. (2005, September). A Guide to Disability Rights Laws, Civil Rights Division, Disability Rights Section. Retrieved from: www.ada.gov/cguide.htm.
U.S. Department of Health and Human Services, National Center for Health Statistics. (2000). National Health Interview Survey. 2nd ICPSR version. doi:10.3886/ICPSR03381. Retrieved from:
http://www.icpsr.umich.edu/cgibin/SDA/ICPSR/hsda?nacda+03381-0003
Xie, Z., Bo, S., Zhang, X., Liu, M., Zhang, Z., Yang, X., Ji, S., & Wu, Z.L. (2008).
Sampling survey on intellectual disability in 0~6-year-old children in China. Journal of Intellectual Disability Research, 52 (12), 1029-1038.
Xu, J., Wang, M., Xiang, Y., & Hu, X. (2005). Quality of life for people with intellectual disabilities in China: A cross-culture perspectives study. Journal of Intellectual Disability Research, 49(10), 745-749.
Zhao, J., Zhang, B., & Yu, G. (2008). Effects of concealable stigma for learning disabilities. Social Behavior and Personality, 36(9), 1179-1188.
Zhang, J. & Hu, J. (2008). Achievement problem and promotion measure of disabled person’s employment in China. Population Journal, 2, 49-52.
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Aug 22, 2014
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Author Biographies
Samuel Myers, University of Minnesota
Samuel Myers, Ph.D. is the Roy Wilkins Professor of Human Relations and Social Justice at the Hubert H. Humphrey School of Public Affairs, University of Minnesota. He received his Ph.D. in economics from the Massachusetts Institute of Technology.
Ding Sai, Chinese Academy of Social Sciences and University of Minnesota
Ding Sai, Ph.D is Professor in the Institute for Ethology and Anthropology, Department of Social and Economic Development of the Chinese Academy of Social Sciences. She is also an affiliate faculty member of the Humphrey School of Public Affairs, University of Minnesota. She received her Ph.D. in economics from the Central Party School in China.