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11. LONGITUDINAL ANALYSIS OF WAGE DIFFERENCES AMONG CLOSURE 26 STATUS COMPETITIVELY EMPLOYED WOMEN AND MEN WITH DISABILITIES WHO RECEIVED VR SERVICES.

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Presentation on theme: "11. LONGITUDINAL ANALYSIS OF WAGE DIFFERENCES AMONG CLOSURE 26 STATUS COMPETITIVELY EMPLOYED WOMEN AND MEN WITH DISABILITIES WHO RECEIVED VR SERVICES."— Presentation transcript:

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2 LONGITUDINAL ANALYSIS OF WAGE DIFFERENCES AMONG CLOSURE 26 STATUS COMPETITIVELY EMPLOYED WOMEN AND MEN WITH DISABILITIES WHO RECEIVED VR SERVICES FROM RSA DURING 2003, 2004, 2005, AND 2006 NCRE Annual Conference San Antonio, TX 21 February, 2009

3 Larry Featherston, A.B.D., C.R.C., C.V.E. DBTAC: Northeast ADA Center Brent Williams, Ph.D., C.R.C. University of Arkansas

4 Women Can't Wait – Join the Fight for Fair Pay! Headline taken May 20, 2008 from the National Women s Law Center website

5 Gender Wage Gap Persists Women working full-time, year-round earn only about 78 cents for every dollar earned by men, virtually the same amount women earned in In 2006, the median annual earnings of women ages 15 and older working full-time, year-round were $32,515, compared to $42,261 for their male counterparts. Minority women fare significantly worse. In 2006, the median earnings of African American women working full-time, year-round were $30,3528 compared to $48,4209 for white, non-Hispanic men; the median for Hispanic women was only $25, This means that an African American woman earned just 69 cents for every dollar earned by a man, while a Hispanic woman earned only 59 cents on the dollar compared to her male counterpart.11 In both cases, this pay gap for women of color was only marginally smaller than it was in National Womens Law Center (2008). Congress must act to close the wage gap for women: Facts on womens wages and pending legislation.

6 Gender Wage Gap Persists continued An earnings gap exists between women and men across a wide spectrum of occupations. In 2006, for example, the median weekly wages earned by women physicians were just 72% of the median weekly wages of male physicians. In some occupations, women have actually lost ground. For example, in a U.S. Government Accountability Office study of management positions in 10 industries the pay gap had increased between 1995 and National Womens Law Center (2008). Congress must act to close the wage gap for women: Facts on womens wages and pending legislation.

7 Gender Wage Gap Persists continued The earnings gap between women and men also persists across all educational levels. There is not a single state in which women have gained economic equality with men. As women get older, the wage gap for them widens. Pay inequity also follows women into retirement. National Womens Law Center (2008). Congress must act to close the wage gap for women: Facts on womens wages and pending legislation.

8 Primary Goal of RSA Help individuals with disabilities achieve their maximum employment potential by providing services which reduce barriers to work through skill acquisition, accommodations and support. –2003: 204,383 achieved employment (84.1% competitively employed) –2004: 199,224 achieved employment (83.8% competitively employed) –2005: 175,968 achieved employment (85.1% competitively employed) –2006: 175,964 achieved employment (85.5% competitively employed)

9 Competitive Employment Employment in the competitive labor market that is performed on a full-time or part-time basis in an integrated setting and for which an individual is compensated at or above the minimum wage, but not less than the customary wage and level of benefits paid by the employer for the same or similar work performed by individuals who are not disabled. (p. 31) Rehabilitation Services Administration (2003). Reporting manual for the case service report (RSA-911) (RSA-PD-03-07).

10 Amount of Money Spent by RSA on Direct Services to Individuals with Disabilities 2003 –$1,717,203, –$1,730,602, –$1,751,507, –Not available Note: This does not include money spent on counseling and guidance services. Rehabilitation Services Administration. (2008). Fiscal year data tables. Retrieved June 22, 2008 from

11 Policies backing RSA Rehabilitation Act of 1973, Section 504 –Provide access for individuals with disabilities to any program or activity receiving federal funds Americans with Disabilities Act of 1990, Title 1 –Prohibits employment discrimination against qualified individuals with disabilities – including job application procedures, hiring, advancement and termination

12 Employment Trends The Employment Rate of Men and Women, Age Without a Work Limitation and With a Work Limitation in the United States from Adapted from and 2004 disability status report: United States by A. J. Houtenville, 2005, and Disability statistics in the United States by A. J. Houtenville, 2006.

13 Barriers to Work Ignorance, prejudice, a reluctance to change by employers Effects of disability – need for continued medical treatment Negative perceptions about returning to work –Lack of confidence and motivation Job availability Lack of Transportation (Bruyere et al., 2006; Feist-Price & Khanna, 2003; Roessler, Williams, Featherston & Featherston, 2006 )

14 Double handicap - additional barriers for women Deegan and Brooks (1985), Feist-Price and Khanna (2003), and Schur (2003) –Gender bias / Sexism –Oppressive actions by society

15 Wage Discrimination Women with disabilities must be afforded the same rights and opportunities as all other persons, irrespective of disability status and sex, with regard to employment. (p.12) Feist-Price, S., & Khanna, N. (2003). Employment inequality for women with disabilities. Off Our Backs, 33(1/2),

16 Most recent evidence of wage discrimination Dey & Hill, 2007 –Women employed full-time, one year out of college are earning 80% of the earnings for men –Women employed full-time, ten years out of college are earning 69% of the earnings for men The gender pay gap has become a fixture of the U.S. workplace and is so ubiquitous that many simply view it as normal. (p. 2)

17 Recent studies providing evidence of the persistent wage gap U.S. General Accounting Office (2003) –After controlling for demographic factors such as marital status, race, number and age of children, and income, as well as work patterns such as years of work, hours worked, and job tenure women still earned, on average, only 80% of what men earned in –That is, there remains a 20% pay gap between women and men that cannot be explained or justified. U.S. General Accounting Office. (2003). Womens Earnings: Work Patterns Partially Explain Difference between Mens and Womens Earnings 2, GAO Retrieved December, 2008 from

18 Recent studies providing evidence of the persistent wage gap - continued Kimberly Bayard, Judith Hellerstein, et al.(2003) –Examined occupational segregation and the pay gap between women and men found that, after controlling for occupational segregation by industry, occupation, place of work, and the jobs held within that place of work (as well as for education, age, and other demographic characteristics), about one-half of the wage gap is due solely to the individuals sex. Kimberly Bayard, Judith Hellerstein, et al. (2003). New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee- Employer Data. Journal of Labor Economics, 21,

19 Most recent evidence of wage discrimination - continued Baldwin & Johnson, 1995 –Women with disabilities were earning 60% of the male wage, with two-thirds of that difference being attributed to discrimination Stoddard et al., 1998 –Women with disabilities were earning 68% of the earnings of women without disabilities –Women with non-severe disabilities were earning 64.6% of the income of men with non-severe disabilities –Women with severe disabilities were earning 79.2% of the income of men with severe disabilities

20 Significance of the Study If working women earned the same as men (those who work the same number of hours; have the same education, age, and union status; and live in the same region of the country), their annual family incomes would rise by $4,000 and poverty rates would be cut in half. (p. 2) National Womens Law Center. (2006). The Paycheck Check Fairness Act: Helping to close the wage gap for women.

21 Purpose of Study The purpose of this study was to longitudinally investigate the magnitude of wage differences among closure 26 status competitively employed women and men with disabilities who received vocational rehabilitation services from RSA in 2003, 2004, 2005 and 2006.

22 Hypothesis Closure 26 status competitively employed women with disabilities who received vocational rehabilitation services from RSA earn less than closure 26 status competitively employed men with disabilities who received vocational rehabilitation services through RSA.

23 Participants Individuals with disabilities who received services through RSA and received a competitive employment closure status in 2003, 2004, 2005 and 2006 Individuals who reported working a week Individual had no missing data

24 Matching procedure To create two equal comparison groups for each fiscal year, men and women were be matched on: 1.Race9.VR counseling received 2.Age10.Additional training 3.Region11.Medicare recipient 4.Education at closure12.Medicaid recipient 5.Cost of services received13.SSI recipient 6.Primary disability14.SSDI recipient 7.Secondary disability15.TANF recipient 8.Disability severity16.Workers Comp recipient Note: The 2005 and 2006 RSA databases did not report age.

25 Demographic Characteristics for Men and Women with Disabilities for Fiscal Years 2003, 2004, 2005, and N (Percent) Prior to Matching Gender Men75,081 (56.6)73,144 (56.9)72,246 (56.8)71,097 (56.7) Women 57,451 (43.4)55,413 (43.1)54,868 (43.2)54,393 (43.3) Total132,532128,557127,114125,480 After Matching Ethnicity Caucasian 9,978 (76.6)9,919 (75.2)23,477 (72.9)23,283 (73.3) African American2,302 (17.7)2,492 (18.9)6,085 (18.9)5,958 (18.8) American Indian or Alaska Native10 (0.1)12 (0.1)88 (0.3)92 (0.3) Asian2 (<0.1)11 (0.1)111 (0.3)105 (0.4) Native Hawaiian or Other Pacific Islander1 (<0.1)3 (<0.1)27 (<0.1)24 (<0.1) Hispanic or Latino740 (5.7)755 (5.7)2,402 (7.5)2,309 (7.3) Total13,03313,19232,19031,771 Note: Men and women were not matched on age for 2005 and 2006 fiscal years.

26 Demographic Characteristics for Men and Women with Disabilities for Fiscal Years 2003, 2004, 2005, and 2006 continued 2003 N 2004 N 2005 N 2006 N Level of Education No formal schooling Elementary education (grades 1-8) Secondary education, no high school diploma (grades 9-12)1,2851,3443,3243,304 Special education certificate of completion/diploma or in attendance ,3191,259 High school graduate or equivalency certificate6,7636,64412,69912,249 Post-secondary education, no degree1,7831,8095,4055,351 Associate degree or Vocational/Technical Certificate1,1751,2374,7674,865 Bachelors degree1,0071,0613,4133,454 Masters degree or higher Training No training received1,0719,38520,41220,229 College2,3291,1403,2873,175 Vocational7381,7235,4565,060 Other8, ,0353,307 Note: Men and women were not matched on age for 2005 and 2006 fiscal years.

27 Demographic Characteristics for Men and Women with Disabilities for Fiscal Years 2003, 2004, 2005, and 2006 continued 2003 N 2004 N 2005 N 2006 N Significant Disability No1,4261,3943,4713,218 Yes11,60711,79828,71928,553 Cost of Services $0-$5,00011,94311,97427,07926,570 $5,001-$10, ,4363,421 $10,001-$15, $15,001-$20, $20,001-$25, $25, VR Counseling No3,9203,7589,8809,035 Yes9,1139,43422,31022,736 Note: Men and women were not matched on age for 2005 and 2006 fiscal years.

28 Demographic Characteristics for Men and Women with Disabilities for Fiscal Years 2003, 2004, 2005, and 2006 continued 2003 N 2004 N 2005 N 2006 N Medicaid No12, Yes Medicare No12, Yes SSI No13, Yes SSDI No13, Yes TANF No13, Yes40147 Workers Comp No13, Yes Note: Men and women were not matched on age for 2005 and 2006 fiscal years.

29 Demographic Characteristics for Men and Women with Disabilities for Fiscal Years 2003, 2004, 2005, and 2006 continued

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31 Data analysis Trend analyses of median earnings Effect size analyses (Cohens d) to determine the magnitude of the wage differences –Due to the large sample sizes, statistical significance testing was inappropriate (Cohen 1962, 1988, 1990, 1994; Huberty, 2002; Kirk, 1996, 2001; Thompson, 1996, 2002)

32 Median Weekly Earnings for Matched Men and Women with Any Disabilities for Fiscal Years 2003, 2004, 2005, and 2006

33 Median Weekly Earnings for Matched Men and Women with Single or Multiple Disabilities for Fiscal Years 2003, 2004, 2005, and 2006

34 Median Weekly Earnings for Matched Men and Women with Any Disabilities by Ethnicity for Fiscal Years 2003, 2004, 2005, and 2006

35 Median Weekly Earnings for Matched Men and Women with Any Disabilities, and Men and Women in the United States for Fiscal Years 2003, 2004, 2005, and 2006 Note: Comparison earnings data was adapted from the U.S. Department of Labor, Bureau of Labor Statistics 2003 – 2006 Current Population Survey. Median usual weekly earnings of full-time and salary workers age 16 and older. data.

36 Median Weekly Earnings for Matched Men and Women with Any Disabilities, and Men and Women in the United States for Fiscal Years 2003, 2004, 2005, and 2006 Note: Comparison earnings data was adapted from the U.S. Department of Labor, Bureau of Labor Statistics 2003 – 2006 Current Population Survey. Median usual weekly earnings of full-time and salary workers age 16 and older. data.

37 Median Weekly Earnings for Matched Men and Women with Disabilities by Educational Attainment at Closure for Fiscal Years 2003 to Educational N MenWomen N MenWomen N MenWomen N MenWomen LevelMedian (75 th %ile) No High School Diploma 1, , , , (400)(301)(400)(320)(400)(336)(420)(344) High School Diploma or equivalent 7, , , , (437)(358)(441)(363)(450)(380)(473)(400) Some College, no degree 2, , , , (518)(440)(545)(460)(558)(480)(580)(480) College degree or higher 1, , , , (769)(700)(780)(709)(800)(711)(840)(750) Note: All values are in U.S. dollars. Men and women were not matched on age for 2005 and 2006 fiscal years.

38 Median Yearly Earnings for Matched Men and Women with Any Disabilities, and Men and Women in the United States for Fiscal Years 2003, 2004, 2005, and 2006 Note: Comparison earnings data was adapted from the U.S. Department of Labor, Bureau of Labor Statistics 2003 – 2006 Current Population Survey. Median usual weekly earnings of full-time and salary workers age 16 and older. data.

39 Before calculating effect sizes Cohens d assumes the data is normally distributed. Must check distribution skewness and kurtosis. As speculated, our data was positively skewed. Used a log transformation to decrease the skewness and make data more normally distributed.

40 Original wage distributions - Men $2,000 $4,000 $6,000 $0 Disability Groups

41 Mens wage distribution - log transformations Disability Groups

42 Original wage distributions - Women $1,000 $2,000 $3,000 $4,000 $0 Disability Groups

43 Womens wage distribution - log transformations Disability Groups

44 Effect Size Calculations on Mean Weekly Earnings for Matched Men and Women with Disabilities for Fiscal Years Note: All values are in U.S. dollars. Men and women were not matched on age for 2005 and 2006 fiscal years. MenWomen YearMinMax75th Median MeanMinMax75th Median Mean d d after Log (Number Matched)Wage Percentile(S.D.)Wage Percentile(S.D.)Transformation With any disability , , (13,033) (228.99) (173.48) , , (13,192) (236.60) (184.89) , , (32,190) (256.02) (197.39) , , (31,771) (277.74) (209.21) With a single disability , , (10,893) (237.58) (178.07) , , (10,951) (236.59) (189.52) , , (22,651) (269.26) (207.80) (22,147) (293.85) (221.63)

45 Effect Size Calculations on Mean Weekly Earnings for Matched Men and Women with Disabilities for Fiscal Years continued Note: All values are in U.S. dollars. Men and women were not matched on age for 2005 and 2006 fiscal years. MenWomen YearMinMax75th Median MeanMinMax75th Median Mean d d after Log (Number Matched)Wage Percentile(S.D.)Wage Percentile(S.D.)Transformation With multiple disabilities , , (2,140) (176.36) (147.45) , , (2,241) (337.21) (158.58) , , (9,539) (364.54) (168.71) , , (9,624) (233.06) (175.23)

46 Discussion Possible explanations for the results: –Data –Service Provisions by RSA –Current Policy

47 Data No identifiable means to triangulate the accuracy or quality of the data Many of the variables in the databases are categorical and are restricted to a single response Only quantitative data on the variables used to track client outcomes were collected Post-employment data are self-reported weekly wages and hours worked No formally assessed outcome measures No measure of service quality

48 Service Provision Individuals with disabilities served through RSA are being placed in basic, entry level positions which only pay minimum wages Placements are in jobs and NOT careers

49 Service Provision continued RSA is NOT achieving the primary goal of helping individuals with disabilities achieve their vocational potential –After 35 years in the workforce, men with disabilities will earn $627,000 (48%) less than men without disabilities and women with disabilities will earn $472,000 (45%) less than women without disabilities. –After 35 years in the workforce, women with disabilities will earn $102,000 (15%) less than men with disabilities. –After 35 years in the workforce, women with single disabilities will earn $105,000 (15%) less than men with single disabilities. –After 35 years in the workforce, women with multiple disabilities will earn $80,000 (12%) less than men with multiple disabilities.

50 Policy – addressing all individuals with disabilities Individuals with disabilities are still being treated unequally and are finding it difficult to compete with workers without disabilities –need for increased enforcement of the discrimination policies set forth by the ADA –tougher penalties for businesses who do not abide by those policies

51 Policy – addressing the needs of women with disabilities Current policy is perpetuating the inequality of services provided to women with disabilities by assuming women have the same needs as men RSA was established to serve men with disabilities and the current infrastructure does not fit the needs of women with disabilities To achieve equality, ALL VR participants must be treated differently

52 Abraham Lincoln statement on the humble citizens right to get ahead I dont believe in a law to prevent a man from getting rich; it would do more harm than good. [But] while we do not propose any war upon capital, we do wish to allow the humblest man [or woman] an equal chance to get rich with everybody else.

53 Questions?


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