Differential Labour Market Impacts from Disability Onset

We estimate the causal labour market impacts of disability onset by gender, age and education levels up to 4 years after onset using longitudinal data from the Household Income and Labour Dynamics Australia survey and difference‐in‐difference propensity score matching techniques. We find lasting negative impacts on employment, especially full‐time employment, which is due more to reduced movement into full‐time employment than downshifting from full‐time to part‐time work following onset. Those without post‐school education qualifications are particularly vulnerable to the impacts of onset and are more likely to be out of work and on income support than those with qualifications up to 4 years after onset, due in part because they have greater difficulty adjusting. Copyright © 2013 John Wiley & Sons, Ltd.