City Research Online

Abstract

This paper provides the first decomposition of the extent to which the UK disability pay gap is a consequence of within-firm inequality and the allocation of workers across firms. We use linked employer-employee data which matches high quality information from employer payroll records to Census data on disability. Our findings indicate that the distribution of disabled and non-disabled employees across firms acts to reinforce within-firm disability-related pay inequality. However, both the raw and unexplained disability pay gap predominately exist within rather than between firms. That the disability pay gap is driven primarily by within-firm wage-setting supports the introduction of employer disability pay gap reporting in the UK.

Publication Type:	Article
Additional Information:	This is a pre-copyedited, author-produced version of an article accepted for publication in Oxford Economic Papers following peer review. The version of record will be available online at: https://academic.oup.com/oep
Publisher Keywords:	disability pay gap, wage discrimination, linked employer-employee data
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Departments:	Bayes Business School Bayes Business School > Faculty of Management
SWORD Depositor:	Symplectic Administrator

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