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KMID : 1124020110270010001
Korean Social Security Studies
2011 Volume.27 No. 1 p.1 ~ p.25
Employment and Wage Differentials between People with and without Disabilities
Oh Uk-Chan

Abstract
This article estimates the actual extent of differentials in employment probability and wage between people with and without disabilities in Korean labor market. The paper also decomposes the differentials into productivity and discrimination components utilizing data from Korean Welfare Panel Study(KoWePS), 2008. The employment probability differentials were 24.8%p. However, when controlling individual characteristics affecting employment, the actual differentials turned out to be 16.1p%. This implies that the actual employment probability level of people with disabilities is 72.4% of those without disabilities. As for monthly wage level, people with disabilities turned out to be only 69.5% of those without disabilities. When hourly wage was used as a dependent variable, controlling variables affecting wages, the wage level of people with disabilities turned out to be 88.2% of those without disabilities. Decomposition of the differentials shows that discrimination differentials were 64.7% of the total employment differentials and 42.7% of the total wage differentials. This implies that people with disabilities achieve poorer outcomes in labor market entry stage (employment) compared to when they are employed (wage). Thus, in order to reduce labor market differentials between people with and without disabilities, the reinforcement of labor supply policies should be considered firsthand.
KEYWORD
disability, employment differential, wage differential, decomposition technique, labour market discrimination
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