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Interpreting Wage Gaps of Disabled Men:The Roles of Productivity and of Discrimination
Using the UK Labour Force Survey, we study wage gaps for disabled meti after the introduction of the Disability Discrimination Act. We estimate wage gaps at the mean and at different quantités of the wage distribution and decompose them into a part explained by differences in workers' and job haracteristics, a part that can be ascribed to health-related reduced productivity, and a residual part. The large original wage gaps reduce substantially when we control for differences in education and occupation, although significant residuals remain. However, when we isolate productivity differences between disabled and nondisabled workers, the residual wage gap becomes insignificant in most cases
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