A Hidden Market: The Purchasing Power of Working-Age Adults With Disabilities
Abstract
This report quantifies the purchasing power of working-age adults with disabilities in the United States, revealing a significant and largely untapped consumer market. With a total after-tax income of $490 billion and discretionary income of $21 billion, people with disabilities represent a substantial economic force. The study challenges common assumptions about the economic participation of people with disabilities and makes a compelling case for businesses to recognize and serve this market segment.
Key Findings
- $490 billion in after-tax income: Working-age adults with disabilities collectively hold $490 billion in total after-tax income, representing a major segment of consumer spending power.
- $21 billion in discretionary income: After covering essential expenses, this population retains approximately $21 billion in discretionary spending power available for goods and services.
- Significant consumer market: The disability community represents a consumer market comparable in size to other major demographic segments frequently targeted by businesses.
- Untapped business opportunity: Despite their substantial purchasing power, people with disabilities remain an overlooked and underserved market, presenting significant opportunities for businesses that prioritize accessibility and inclusion.
- Extended market influence: The economic influence extends beyond individuals with disabilities to their families, friends, and caregivers, who often make purchasing decisions based on accessibility and inclusion.
Purchasing Power of Working-Age Adults With Disabilities
Dollar amounts in billions
Market Summary
| Metric | Value |
|---|---|
| Total After-Tax Income | $490 billion |
| Total Discretionary Income | $21 billion |
| Working-Age Adults With Disabilities | 24+ million |
| Market Segment Comparison | Comparable to major demographic segments |
Data & Methods
This study uses data from the U.S. Census Bureau's American Community Survey (ACS) and the Bureau of Labor Statistics' Consumer Expenditure Survey (CEX) to estimate the total after-tax income and discretionary income of working-age adults (ages 18-64) with disabilities. Discretionary income is calculated by subtracting essential expenditures (housing, food, healthcare, transportation) from total after-tax income.
Implications
- Recognize the disability market. Businesses should acknowledge the significant purchasing power of people with disabilities and develop strategies to serve this market through accessible products, services, and marketing.
- Invest in accessibility. Companies that invest in accessible design and inclusive business practices can tap into a $490 billion market while fostering brand loyalty among consumers with disabilities and their networks.
- Expand employment opportunities. Increasing employment for people with disabilities would further grow their purchasing power, benefiting both individuals and the broader economy.
Citation
Yin, M., Shaewitz, D., Overton, C., & Smith, D. (2018). A Hidden Market: The Purchasing Power of Working-Age Adults With Disabilities. American Institutes for Research.