Disability onset and labor market outcomes

Collischon, Matthias and Hiesinger, Karolin and Pohlan, Laura (2025) Disability onset and labor market outcomes. SOCIO-ECONOMIC REVIEW, 23 (4). pp. 2033-2064. ISSN 1475-1461, 1475-147X

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Abstract

This article analyzes the individual-level effects of disability onset on labor market outcomes using novel administrative data from Germany. Combining propensity score matching techniques with an event-study design, we find lasting negative impacts on employment and wages. One important mechanism is transitions to nonemployment after disability onset: the number of nonemployment days of the newly disabled increases by 36 days per year after one year and by 55 days after five years compared to the control group. For those who stay in employment, working part-time and switching to less physically or psychosocially demanding jobs are important adjustment paths. The negative labor market effects of disability onset are more pronounced for severely disabled, older, and low-skilled individuals.

Item Type: Article
Uncontrolled Keywords: HEALTH SHOCKS; LONGITUDINAL STRUCTURE; EARNINGS LOSSES; WORK; EMPLOYMENT; PEOPLE; DURATION; CANCER; INCOME; I10; J14; J21; J71; disability; labor market outcomes; propensity score matching; event study
Subjects: 300 Social sciences > 330 Economics
Divisions: Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie
Depositing User: Dr. Gernot Deinzer
Date Deposited: 11 Aug 2026 07:37
Last Modified: 11 Aug 2026 07:37
URI: https://pred.uni-regensburg.de/id/eprint/66976

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