An Uneven Playing Field: The Lack of Equal Pay for People With Disabilities
Abstract
This report provides a comprehensive analysis of the earnings gap between workers with and without disabilities across the United States. Using American Community Survey data, the study documents persistent pay inequities that widen with increasing education levels. The findings reveal that if people with disabilities earned equal pay, the U.S. GDP would increase by $141 billion, and federal and state governments would collect an additional $31.5 billion in tax revenue. The report underscores the economic costs of disability-based wage discrimination and calls for policy action to close the gap.
Key Findings
- Earnings gap widens with education: The disparity in earnings between workers with and without disabilities grows larger at higher education levels, with the greatest inequalities occurring at the master's degree level or higher.
- $141 billion GDP impact: If workers with disabilities received equal pay for equal work, the U.S. GDP would increase by an estimated $141 billion annually.
- Federal tax revenue loss: The earnings gap results in approximately $25 billion in lost federal income tax revenue each year.
- State tax revenue loss: State governments lose an estimated $6.5 billion in tax revenue annually due to the disability pay gap.
- Persistent across all education levels: Workers with disabilities earn less than their non-disabled counterparts at every education level, from less than high school through advanced degrees.
- Double disadvantage: Women with disabilities face compounded pay inequities, experiencing both the gender wage gap and the disability wage gap simultaneously.
Earnings Gap by Education Level
Median earnings comparison: workers with vs. without disabilities
Economic Impact Summary
| Metric | Impact |
|---|---|
| Additional GDP with Equal Pay | $141 billion |
| Lost Federal Tax Revenue | $25 billion |
| Lost State Tax Revenue | $6.5 billion |
| Total Lost Tax Revenue | $31.5 billion |
| Education Level with Greatest Gap | Master's degree or higher |
Data & Methods
This study uses data from the U.S. Census Bureau's American Community Survey (ACS) to analyze earnings differentials between workers with and without disabilities. The analysis examines median earnings across education levels, gender, and disability status, and estimates the macroeconomic impact of pay inequities on GDP and tax revenue using standard economic modeling approaches.
Policy Recommendations
- Enforce equal pay protections. Strengthen enforcement of existing anti-discrimination laws to ensure workers with disabilities receive equal compensation for comparable work.
- Invest in education and career advancement. Because the pay gap widens with education, targeted programs should support career advancement for highly educated workers with disabilities.
- Address intersectional disparities. Develop policies that account for the compounded effects of disability and gender on pay, ensuring women with disabilities are not doubly disadvantaged.
- Increase employer awareness. Launch initiatives to educate employers about the economic benefits of equitable pay practices and the costs of wage discrimination.
Citation
Yin, M., Shaewitz, D., & Megra, M. (2014). An Uneven Playing Field: The Lack of Equal Pay for People With Disabilities. American Institutes for Research.