Expanding Employment Opportunities for People with Disabilities: The Impact Beyond Subminimum Wage Removal

• In Event: Ensuring Access to Quality Jobs: Reducing Employment Gaps and Improving Supports

Abstract

            This study examines the impact of Maryland’s 2016 rehabilitation policy bundle on employment and labor force participation among people with disabilities with no more than a high school education. The policy package—which included the abolition of subminimum wage, expansion of employment assistance, workplace accommodations, and vocational training—aimed to improve access to competitive integrated employment (CIE). Using a combination of the synthetic control method and a difference-in-differences approach, the study finds that Maryland experienced a statistically significant increase in both labor force participation and employment rates relative to carefully selected comparison states. Labor force participation rose by 6.5 percentage points, while employment increased by 4.3 percentage points. These results suggest that comprehensive policy interventions—including minimum wage reform and enhanced employment services—can play a meaningful role in improving labor market outcomes for people with disabilities, offering valuable insights for future state-level policy design.

Author

• Huang Chen, George Washington University
  Presenting Author