Measuring the effects of employment protection policies: Theory and evidence from the Americans with Disabilities Act

Title I of the Americans with Disabilities Act (ADA) is an employment protection policy for disabled workers. By exploiting cross-state variation in pre-ADA legislation, we measure the effects of the law on transition rates of disabled workers. We find a decline in employment-to-non-employment trans...

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Bibliographic Details
Main Authors: Kim, S. (Author), Rhee, S. (Author)
Format: Article
Language:English
Published: Elsevier B.V. 2018
Subjects:
Online Access:View Fulltext in Publisher
LEADER 01346nam a2200193Ia 4500
001 10.1016-j.labeco.2018.08.001
008 220706s2018 CNT 000 0 und d
020 |a 09275371 (ISSN) 
245 1 0 |a Measuring the effects of employment protection policies: Theory and evidence from the Americans with Disabilities Act 
260 0 |b Elsevier B.V.  |c 2018 
856 |z View Fulltext in Publisher  |u https://doi.org/10.1016/j.labeco.2018.08.001 
520 3 |a Title I of the Americans with Disabilities Act (ADA) is an employment protection policy for disabled workers. By exploiting cross-state variation in pre-ADA legislation, we measure the effects of the law on transition rates of disabled workers. We find a decline in employment-to-non-employment transitions after the ADA, with an insignificant change in flow into employment. We use a model to disentangle the costs of firing and hiring imposed by the ADA. Our findings suggest that the ADA induces firms to fire less frequently but become more selective with new hires, impacting the aggregate productivity of the workforce and output of the economy. © 2018 Elsevier B.V. 
650 0 4 |a Americans with Disabilities Act 
650 0 4 |a Employment protection 
650 0 4 |a Search friction 
650 0 4 |a Worker flows 
700 1 |a Kim, S.  |e author 
700 1 |a Rhee, S.  |e author 
773 |t Labour Economics