The Earnings Consequences of the Americans with Disabilities Act on People with Disabilities

To improve labor market outcomes of people with disabilities, Congress passed the Americans with Disabilities Act (ADA) in 1990. Immediately following enactment, the wages of people with disabilities decreased, but longer-term wage consequences have not been studied. Using data from the March Current Population Survey for 1988-2010, this working paper shows that the ADA led to a longer-term increase in the weekly wages of those with disabilities. Furthermore, the wage effect of the ADA varies according to level of education.