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Demography, Economics, or Policy: What Drives the Employment Rates of People with Disabilities (PWD)? Lauren Gilbert, MPP (Georgetown, 2016) SSA DRC 2016 Summer Fellow Washington D.C. August 8, 2016

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Page 1: LaurenGilbert_Fellowship_Presentation

Demography, Economics, or Policy: What Drives the Employment Rates of

People with Disabilities (PWD)?

Lauren Gilbert, MPP (Georgetown, 2016)SSA DRC 2016 Summer Fellow

Washington D.C.

August 8, 2016

Page 2: LaurenGilbert_Fellowship_Presentation

Problem: Employment Gap Between PWD and People Without Disabilities is Too Large

2008 2009 2010 2011 2012 2013 20140.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

U.S. Employment Rates of People with and without Disabilities Ages 18-64, 2008-2014

PWD People without Disabilities

Based on data from disabilitystatistics.org

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States Vary Widely in Their Employment Rates for PWD

All States + DC & PR0

5

10

15

20

25

30

35

40

45

State Employment Rates for PWD Ages 18-64 in the Community in Percentage Points, 2014

Q1 to MedianQ1

Based on data from Table 2.1 of the Disability Statistics Compendium

Page 4: LaurenGilbert_Fellowship_Presentation

What contributes to the variation?

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● Examples: disability prevalence, prevalence of specific subgroups of disability, age distribution

● Different employment outcomes depending on demographic subgroups (Yin & Shaewitz 2015; Schur et al. 2013; Fogg et al. 2010, 2011; GAO 2007)

Demographics

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Wide Variation Between States in Prevalence of Different Disabilities

Auditory Visual Cognitive Ambulatory Self-Care Independent Living

0

10

20

30

40

50

60

State Variation in Disability Subtype Prevalence in Population of Non-institutionalized PWD Ages 18-64 in Percentage Points, 2014

Q1 to MedianQ1

Based on data from Tables 1.10, 1.14, 1.17, 1.20, 1.23, and 1.25 of the Disability Statistics Compendium

Page 7: LaurenGilbert_Fellowship_Presentation

Wide Variation in Employment Rates of People with Different Disabilities

Auditory Visual Cognitive Ambulatory Self-Care Independent Living

0

10

20

30

40

50

60

70

State Employment Rates of Non-Institutionalized PWD Ages 18-64 by Disability Category in Percentage Points, 2014

Q1 to MedianQ1

Based on data from Tables 2.3 – 2.8 of the Disability Statistics Compendium

Page 8: LaurenGilbert_Fellowship_Presentation

Wide Variation Between States in Prevalence of Different Disabilities

Auditory Visual Cognitive Ambulatory Self-Care Independent Living

0

10

20

30

40

50

60

State Variation in Disability Subtype Prevalence in Population of Non-institutionalized PWD Ages 18-64 in Percentage Points, 2014

Q1 to MedianQ1

Based on data from Tables 1.10, 1.14, 1.17, 1.20, 1.23, and 1.25 of the Disability Statistics Compendium

Page 9: LaurenGilbert_Fellowship_Presentation

Wide Variation in Employment Rates of People with Different Disabilities

Auditory Visual Cognitive Ambulatory Self-Care Independent Living

0

10

20

30

40

50

60

70

State Employment Rates of Non-Institutionalized PWD Ages 18-64 by Disability Category in Percentage Points, 2014

Q1 to MedianQ1

Based on data from Tables 2.3 – 2.8 of the Disability Statistics Compendium

Page 10: LaurenGilbert_Fellowship_Presentation

State Economics

● Examples: State-level employment rates, per capita income, price levels

● Explains ~1/3 of VR employment outcome variation in past research (GAO 2007)

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● VR is joint federal and state system– Federal = Rehabilitation Services Administration (RSA)– State = VR agencies

● Provides services to help PWD find work● Often not enough funding –> order of selection● Funded through federal-state matching formula● National Council on Disability (NCD) & Government

Accountability Office (GAO): Revise the formula!

Vocational Rehabilitation?

Page 12: LaurenGilbert_Fellowship_Presentation

VR Funding Formula Spreads Funding Unevenly

From GAO 2009 Highlights

Page 13: LaurenGilbert_Fellowship_Presentation

● What is the relationship between the employment rate for PWD and:1. Vocational rehabilitation (VR) spending?2. The demographics of the state’s population of

PWD?3. Local economic circumstances?

Research Questions

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Methodology

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● American Community Survey (ACS) 1-year estimates

● RSA-2 VR expenditures by state● Other state-level datasets

Data

Page 16: LaurenGilbert_Fellowship_Presentation

● OLS model with fixed effects for state and year

● Dependent variable: State employment rate for non-institutionalized PWD ages 16-64 (working-age)

Model

Page 17: LaurenGilbert_Fellowship_Presentation

● Combined state and federal VR expenditure within state for each year

● Normalized per working-age PWD● In other words:

vr = (state vr expenditure + federal vr expenditure)

population of working-age PWD

VR Expenditure

Page 18: LaurenGilbert_Fellowship_Presentation

● Share of PWD population with:– Sensory– Cognitive– Ambulatory– Self-Care– Independent living

● Share in last decade before age 65● Share of general working-age population with

disability● Size of working-age population

Demographic variables

Page 19: LaurenGilbert_Fellowship_Presentation

Local Economic Variables

● Per capita income● Employment rate for people without

disabilities● Average weekly wages● Total taxable resources

Page 20: LaurenGilbert_Fellowship_Presentation

Interaction Variables

● VR expenditure *– Share of working-age population with disability– Average weekly wages– Employment rate of people without disabilities– Per capita income– Working-age population

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● If demographic variables are significant, find targeted ways to counteract

● If economic variables are significant, focus on economic growth

● If VR expenditure is significant, increase funding– Insignificance != ineffectiveness

● If interactions are significant, may be evidence for formula adjustment

Implications

Page 22: LaurenGilbert_Fellowship_Presentation

Limitations

● Correlation, not causation● Undercounting population of PWD with ACS

(Burkhauser et al. 2012)● Enough statistical power?● Is VR effect large enough to detect?● Funding does not mean quality

Page 23: LaurenGilbert_Fellowship_Presentation

Next Steps

● Running diagnostics– Poolability– Multicollinearity– Heteroskedasticity– Serial correlation

● Setting up statistical model● Analyzing data

Page 24: LaurenGilbert_Fellowship_Presentation

Contact Information

Lauren Gilbert(610) 316-5933

[email protected] or [email protected]

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Works Cited

● Burkhauser, R. V., T. L. Fisher, A. J. Houtenville, and J. R. Tennant. " Using the 2009 CPS-ASEC-SSA Matched Dataset to show Who is and is Not Captured in the Official

Six- Question Sequence on Disability." 14th Annual Joint Conference of the Retirement Research Center Consortium. Washington, D.C.: 2012.

● Fogg, N. P., P. E. Harrington, and B. T. McMahon. “The Underemployment of Persons with Disabilities during the Great Recession.” The Rehabilitation Professional, vol.

19, no. 1, 2011, pp. 3-10.● Fogg, N. P., P. E. Harrington, and B. T. McMahon. “The Impact of the Great Recession upon

the Unemployment of Americans with Disabilities.” Journal of Vocational Rehabilitation, vol. 33, 2010, pp. 193-202.

● Government Accountability Office. “Vocational Rehabilitation Funding Formula: Options for Improving Equity in State Grants and Considerations for Performance

Incentives .” Report No. GAO-09-798. Washington, D.C.: Government Accountability Office, September 2009.

● Government Accountability Office. “Vocational Rehabilitation: Improved Information and Practices may Enhance State Agency Earnings Outcomes for SSA

Beneficiaries.” Report No. GAO-07-521. Washington, D.C.: Government Accountability Office, May 2007.

● Institute on Disability. “2015 Annual Disability Statistics Compendium.” Available at :[http://disabilitycompendium.org/statistics]. Accessed on June 29, 2016.

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More Works Cited

● Institute on Employment and Disability. “Disability Statistics.” Available at :[https://www.disabilitystatistics.org/reports/acs.cfm?statistic=2]. Accessed on July 26, 2016.

● National Council on Disability. “Vocational Rehabilitation (VR) Funding.” Workforce Investment Act Reauthorization Topical Brief Washington, D.C.: National Council on Disability, March 23 2010.

● Schur, L., D. Kruse, and P. Blanck. People with Disabilities: Sidelined Or Mainstreamed? Cambridge University Press, 2013.

● Yin, M. and D. Shaewitz. “One Size does Not Fit all: A New Look at the Labor Force Participation of People with Disabilities.” Washington, D.C.: American Institutes for Research, September 2015.