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PurposeThis paper aims to identify and draw together key themes in the literature relating to the impact of disability on labour market outcomes. In doing so it provides an overview of issues in estimation in empirical work relating to disability.Design/methodology/approachThis paper reviews the existing international evidence relating to the impact of disability on labour market outcomes.FindingsRegardless of country, data source or time period disability serves to reduce labour market prospects. Understanding the reasons for this requires consideration of issues such as separating discrimination from unobserved differences in productivity and preferences, the influence of heterogeneity within the disabled group and the dynamic effects of disability.Practical implicationsThe paper also reviews recent evidence concerning the labour market impact of significant changes in legislation affecting the disabled, particularly the introduction of the Americans with Disabilities Act in the USA. This evidence is particularly useful to policymakers.Originality/valueThe paper provides a comprehensive review of the empirical evidence relating to the labour market impact of disability and the influence of recent changes in legislation.

In this paper, I examine the reasons for high rates of part‐time employment among disabled workers in the UK. Evidence from the Labour Force Survey suggests that part‐time employment provides an important way of accommodating a work‐limiting disability rather than reflecting marginalization of the disabled by employers. Differences in part‐time employment within the disabled group are also examined.

ABSTRACTThis paper uses data from the Quarterly Labour Force Survey in the UK (1997–2006) and changes in the coverage of the Disability Discrimination Act (DDA), that result from the removal of the small firm exemption, to assess the labour market impact of the legislation. The data support a narrowing of the employment gap between the disabled and non‐disabled over the post DDA period. However, the evidence based on small firms does not support this being a direct result of the employment provisions of the DDA.

This paper examines the dynamic relationship between work‐limiting disability and labour market outcomes using longitudinal data created by matching individuals in the Local Labour Force Survey (2004–10). By applying event‐study methods, changes in employment are traced through the onset of, and exit from, disability. These relationships are examined between subgroups of the population, including those defined by the nature and severity of disability. For most groups we find evidence of asymmetry in the impact of onset and exit: employment is significantly reduced at onset and continues to decline post‐onset whereas, after controlling for unobserved heterogeneity, exiting disability has a limited effect.