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Are Employment Protection Laws for Disabled People Effective in a Developing Country Evidence from Cambodia

Author

Listed:
  • Palmer, Michael
  • Williams, Jenny
Abstract
This paper investigates the impact of a law protecting and promoting the employment rights of disabled people in a developing country setting. Using data from the Cambodian Socioeconomic Survey and a difference-in-difference design, we find that employment of the disabled fell by around 9 percentage points in the four years following the introduction of the disability law. The reduction in employment is greater for women than men and is concentrated amongst employees, with the self-employment rate unaffected by the policy change. Several mechanisms via which the introduction of the law reduced employment of the disabled are explored. We find that the most plausible mechanism is that employers reduce their demand for disabled labor in order to avoid the cost of workplace accommodations for disabled workers. We also find that families respond to the reduced employment of their disabled members by providing unpaid work and roles within the family home, and by providing income transfers to non-resident disabled family members.

Suggested Citation

  • Palmer, Michael & Williams, Jenny, 2017. "Are Employment Protection Laws for Disabled People Effective in a Developing Country Evidence from Cambodia," MPRA Paper 87944, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:87944
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    References listed on IDEAS

    as
    1. Richard Burkhauser & Mary Daly & Andrew Houtenville & Nigar Nargis, 2002. "Self-reported work-limitation data: What they can and cannot tell US," Demography, Springer;Population Association of America (PAA), vol. 39(3), pages 541-555, August.
    2. Bell, David & Heitmueller, Axel, 2009. "The Disability Discrimination Act in the UK: Helping or hindering employment among the disabled?," Journal of Health Economics, Elsevier, vol. 28(2), pages 465-480, March.
    3. Gindling, T.H. & Newhouse, David, 2014. "Self-Employment in the Developing World," World Development, Elsevier, vol. 56(C), pages 313-331.
    4. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
    5. Julie L. Hotchkiss, 2004. "A Closer Look at the Employment Impact of the Americans with Disabilities Act," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    6. Christine Jolls & J.J. Prescott, 2004. "Disaggregating Employment Protection: The Case of Disability Discrimination," NBER Working Papers 10740, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    disability law; employment; difference-indifference design; developing country;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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