• Home • VEI Main Site • Econometrics • Search •

Residual Capacity

Challenge Issues Challenge Cases


Actual Earnings Use
Average Statistics
Basic Analysis Methodology
Broad Support
Census Bureau Caveat
Chronic Disability
Corcione Article
CPS Data Validity
CPS Definition of Work Disability
CPS Self-reported Disability
CPS Use by Other Researchers
Daubert/Kumho Standards - WLE
Employment, Earnings, & Disability
Expert Qualifications
First Work Disability Question
Hale Article
Hamel Letter
Heterogeneity
Medical Impairment Ratings
Multi-year Data Averaging
Offset Use
Possibility of Future Disability
Residual Capacity
Sample Selection Bias
Skoog & Toppino Article
Temporary Disability
VALE Software
Veteran's Disability

 

Usual Opposition Position
Some contend that work disability does not necessarily have an effect on a person's ability to earn money or remain employed over a lifetime, especially if, at the time of assessment, the person has returned to work or if he or she is expected to attain the same educational level as they would have absent injury
 
VEI Position
The presence of a disability is widely known to affect both earnings and worklife expectancy.  This finding is documented in results from various surveys, including the Current Population Survey (CPS), the Survey of Income and Program Participation (both from the Census Bureau), the National Health Interview Survey (NHIS) from the National Center for Health Statistics, and the 1998 N.O.D./Harris Survey of Americans With Disabilities.  The disability effect is the cause of such events as the passage of the well-known Americans with Disabilities Act, the existence of the President’s Committee on Employment of People with Disabilities, and the practice of rehabilitation counseling, just to name a few. 

It is important to understand the impact of permanent work disability on people in the modern labor market.  Employers and employees do not form lifetime relationships where the employee stays with a single employer for the duration of his or her career – whether they are disabled or not.  According to the Bureau of Labor Statistics, the average U.S. worker has more than nine employers just between the ages of 18 and 36, let alone further shifts after the age of 36.  

In addition, private research (Gibson 2000; Yelin 1996; Yelin and Trupin 1997) has shown that employed persons with a work disability, both not severe and severe, are more likely to become unemployed than persons without a work disability.  If unemployed, they are less likely to find employment.  These differences become more profound with age.  Similar findings were presented in a paper by McCollister and Pflaum (2004).  Using data from the NHIS, they found that persons with back pain were less likely to be employed than persons without disability and that the difference increased with age.

Even if persons with a work disability find employment conducive to their disabilities, they face ongoing struggles to cope with their disabilities.  These struggles may intensify with age, continuously making it more difficult to compete with their counterparts without disability.  The same holds true when, despite a cognitive injury (e.g., traumatic brain injury, lead poisoning), a child is expected to complete the same educational level that he or she would have been expected to complete absent injury.  Persons with high school diplomas, for instance, have a wide range of intellectual capabilities and, therefore, a wide range of earning capabilities.  Saying that a person will still be able to obtain a high school diploma does not negate the possibility of a loss of earnings.  The impairments will place the individual at a disadvantage in the labor market compared to those without disability, and likely cause the person to have a harder time finding and/or maintaining comparable employment.
 
Related Challenges
Davis v. Abad Engle v. Urethane Farina v. Hershey
Franks v. Caito Greene v. Johnson Lyons v. Follweiler
Shaheen V. Advantage Taylor v. Tomato Products Williams et al. v. New York
 
Related Articles
Gibson & Gluck (2000) Pflaum, et al. (2003)  

Last modified: Thursday January 26, 2006 12:03 PM


Several links in this site are to documents that require the Acrobat ® Reader ® software.  Click logo for information on this free software
Questions or problems regarding this web site should be directed to VEI Webmaster.