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A Closer Look at the Employment Impact of the Americans with Disabilities Act

This paper replicates recent findings that employment among disabled people has declined since the ADA. A closer look indicates that this decline results from a drop in the labor force participation rate among those classified as disabled. Further analysis indicates that this labor force participation rate decline, however, was not the result of disabled individuals fleeing the labor market, but, rather, more likely a result of the reclassification of nondisabled, nonparticipants, as disabled. The unconditional employment probability among disabled people (taking selection into the labor market into account) has not declined, and may have actually improved for certain disability classifications.