Leading the Way, or Falling Behind? What the Data Tell Us About Disability Pay Equity and Opportunity in Boston and Other Top Metropolitan Areas
Abstract
This report examines disability pay equity across the largest metropolitan areas in the United States, with a special focus on Boston. The study finds that Boston's income gap between workers with and without disabilities is approximately $24,000 -- nearly $10,000 more than the national average. The report analyzes how this gap varies by education level and quantifies the resulting federal income tax losses. By benchmarking Boston against peer cities, the study provides data-driven insights for local policymakers, employers, and advocates seeking to advance disability economic inclusion.
Key Findings
- Boston's outsized income gap: The income gap between workers with and without disabilities in Boston is approximately $24,000, nearly $10,000 more than the national average gap of about $14,000.
- Education amplifies the gap: The pay gap widens significantly at higher education levels. Workers with disabilities who hold advanced degrees face the largest absolute earnings disparities in Boston and other high-cost metros.
- Significant tax revenue losses: The disability income gap across top metro areas results in billions of dollars in lost federal income tax revenue that could otherwise support public services and economic growth.
- Metro-level variation: Pay equity outcomes vary considerably across major metro areas, suggesting that local economic conditions, industry mix, and policy environments play important roles in shaping disability employment outcomes.
- High-cost cities, higher gaps: Metro areas with higher costs of living and higher average wages tend to have larger absolute income gaps for workers with disabilities, despite often being considered progressive on disability inclusion.
Disability Income Gap by Metropolitan Area
Approximate annual income gap between workers with and without disabilities
Metro Area Comparison
| Metropolitan Area | Approx. Income Gap | Difference from National Avg |
|---|---|---|
| Boston | ~$24,000 | +~$10,000 |
| New York | ~$22,000 | +~$8,000 |
| San Francisco | ~$21,000 | +~$7,000 |
| Chicago | ~$18,000 | +~$4,000 |
| Los Angeles | ~$17,000 | +~$3,000 |
| National Average | ~$14,000 | -- |
Data & Methods
This study uses data from the U.S. Census Bureau's American Community Survey (ACS) to analyze income gaps between workers with and without disabilities across the largest metropolitan statistical areas (MSAs). The analysis examines median personal income by disability status, education level, and metro area, and estimates federal income tax revenue losses resulting from the disability income gap using standard tax modeling approaches.
Policy Recommendations
- Set metro-level pay equity benchmarks. Cities and metro areas should establish specific, measurable targets for closing the disability income gap, with regular tracking and public reporting of progress.
- Leverage local employer networks. Major metros should engage their largest employers in disability hiring and pay equity initiatives, recognizing that local industry composition shapes outcomes.
- Invest in education-to-employment pipelines. Because the gap widens with education, metro areas must ensure that people with disabilities have equitable access to higher education and that educational attainment translates to comparable earnings.
- Quantify the local economic cost. City and state governments should calculate the specific tax revenue losses and economic costs attributable to the disability income gap in their metro area to build the case for action.
Citation
Yin, M., Shaewitz, D., & Megra, M. (2020). Leading the Way, or Falling Behind? What the Data Tell Us About Disability Pay Equity and Opportunity in Boston and Other Top Metropolitan Areas. American Institutes for Research / Ruderman Family Foundation.