Financial Implications of Half- and Full-Time Employment for Persons with Disabilities

Increased financial well-being is often assumed to be a benefit of full-time employment for handicapped individuals. However, there is some evidence that this is not true. In this study a balance sheet approach was utilized to examine the financial implications of part-time and full-time employment for persons with handicaps. Balance sheets (income versus expenses) were developed for three income levels: no earned income, income from a part-time (20 hours a week) job, and income from a full-time (40 hours a week) job. The results indicated that net disposable income was comparable for individuals working part time when compared to individuals working full time. In either case, the net disposable income is no more than $3,000 over the net disposable income for an unemployed person. This provides evidence that there is an absence of financial incentives for full-time employment and suggests that persons with disabilities should carefully consider the financial effects of potential employment.