Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach

Zweimüller, Josef, Rafael Lalive and Jean-Philippe Wuellrich
Authors registered in the RePEc Author Service: Josef Zweimüller

No 7373, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the impact of employment quota on firms' demand for disabled workers. The Austrian Disabled Persons Employment Act (DPEA) requires firms to provide at least one job to a disabled worker per 25 non-disabled workers, a rule which is strictly enforced by non-compliance taxation. We find that, as a result of the discontinuous nature of the non-compliance tax, firms exactly at the quota threshold employ 0.05 (20 % in relative terms) more disabled workers than firms just below the threshold - an effect that is unlikely driven by purposeful selection below the threshold. The flat rate nature of the non-compliance tax generates strong employment effects for low-wage firms and weak effects for high-wage firms. We also find that growing firms passing the quota threshold react with a substantial time-lag but the magnitude of the long-run effect is similar to the one found in cross-section contrasts.

Keywords: Disability; Discrimination; Employment; Employment quota; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: J15 J20 J71 J78 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://cepr.org/publications/DP7373 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Do Financial Incentives for Firms Promote Employment of Disabled Workers? A Regression Discontinuity Approach (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:7373

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP7373

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().