People with Disabilities Earn 37% Less on Average
Author: American Institutes for Research
Published: 15 Dec 2014 - Updated: 25 Feb 2021
Table of Contents:
Synopsis - Overview - Related Content
Synopsis
Among workers with high school degree or equivalent, those with disabilities earned on average less than their peers.
Overview
Workers with disabilities who have at least a high school education earn 37 percent less on average than their peers without disabilities, a disparity costing federal and state governments up to $31.5 billion in potential tax revenue, finds an American Institutes for Research (AIR) analysis.
Earnings disparities increase with higher educational attainment. Among workers with a high school degree or the equivalent, those with disabilities earned on average $6,505 less than their peers in 2011. The gap widens to nearly $21,000 on average among those with a master's or more advanced degree.
AIR experts note that employees with disabilities face economic discrimination similar to what female employees experience; they get 37 percent less pay compared with 35 percent for women.
"Although non-discriminatory compensation is protected through the Civil Rights, Americans with Disabilities, and Rehabilitation Acts, our results show that earnings inequalities are gaping," said AIR author Michelle Yin. Co-author Dahlia Shaewitz adds: "Education and employment are not enough. Equal pay is key to keeping people with disabilities economically independent and out of poverty."
State trends mirror national trends. For employees with a high school diploma or its equivalent, the highest average income inequalities are observed in:
- Vermont ($12,700)
- Connecticut ($12,000)
- Iowa ($10,000)
Among those with a bachelor's degree, the greatest disparities are in:
- Washington, D.C. ($20,000)
- Minnesota ($18,000)
- Washington ($17,000)
At the master's and higher level, the states with the largest gaps are:
- Nevada ($38,700)
- Connecticut ($35,500)
- Hawaii ($33,800)
These trends are reversed in some states, but only in specific educational levels. For example, some workers with disabilities earn more than their peers in the following states:
- Some college education: North Dakota ($9,000), Mississippi ($2,000) and Rhode Island ($2,000).
- Associate's: Utah ($6,500), Wyoming ($1,500) and New Jersey ($1,000).
- Bachelor's: Wyoming ($6,000), New Hampshire ($4,500) and Alaska ($2,500).
- Master's or more advanced: South Dakota ($16,000), Utah ($15,000) and Kentucky ($2,000).
Researchers also looked at broader economic impacts and found that lack of equal pay costs the U.S. economy $141 billion, amounting to about 1 percent of gross domestic product, or about as much as the federal government allocates to education. Loss of tax revenue is another consequence, totaling more than $25 billion for the federal government and more than $6.5 billion for states.
"An Uneven Playing Field: The Lack of Equal Pay for People with Disabilities" used data from the U.S. Census Bureau's 2011 American Community Survey.
Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally issued as a press release by American Institutes for Research and published on 15 Dec 2014. Last updated on 25 Feb 2021. This content may have been edited for style, clarity, or brevity.