ALTERNATIVE WORK ARRANGEMENTS AMONG PEOPLE

WITH DISABILITIES

Douglas Kruse and Lisa Schur

Rutgers University

Presentation to Disability Research Institute symposium, Washington, D.C., March 2004

Alternative work arrangements include:

• Contingent work:

Temporary agency employment

Other temporary jobs

Independent contracting• Part-time employment• Flexible arrangements

Telecommuting/home-based work

Flexible schedules

Main Data Sources on Alternative Work Arrangements

1) Current Population Survey: March Supplements, 1992-2001Contingent Work Supplements, Feb. 1995, 1997, 1999, 2001Work Schedules Supplements, May 1991 and 1997

2) Survey of Income and Program Participation: Disability Topical Modules, 1990-1999

All analyses are limited to working-age (18-64)

Figure 1: Contingent and Part-time Work Arrangements by Disability Status Among Those Employed, 2001

44.4%

21.9%

29.8%

13.0%10.4%

5.1%

10.3%

6.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

With w ork disability Without w ork disability

Source: Current Population Survey data

Any contingent or part-time work

Part-time employees

Temporary employees

Independent contractors

Individuals with disabilities may find these work arrangements especially attractive due to:

1. lower demands on time and energy;2. more flexibility to deal with health problems, therapy schedules, etc.;3. lower or no transportation costs (especially for home-based work);4. the opportunity to test skills and interests in different work environments;5. the opportunity to work while staying under disability income earnings thresholds.

CAUSES of alternative work arrangements for people with disabilities

In addition, employers may find these work arrangements attractive for assessing worker skills and potential for standard jobs among people with disabilities (particularly when there is uncertainty over the limiting effects of disabilities).

Employer discrimination, however, may limit access to permanent full-time jobs among people with disabilities, channeling those who want to work into contingent or part-time jobs

Which of these causes are the most important?

The various advantages to people with disabilities appear to be the dominant factor. Health problems and doctor visits help explain the use of non-standard jobs. Also, non-standard work arrangements increased among people with disabilities in the tighter labor markets of the late 1990’s, indicating these types of jobs are preferred by many people with disabilities as labor market opportunities expand.

Employer discrimination is not a major factor in explaining the high rate of non-standard jobs, as shown both by reports of discrimination and filings of lawsuits.

Disability income earnings thresholds are also not a major factor: non-recipients are also very likely to have non-standard jobs, and very few employed recipients increased their earnings when the SSDI threshold was raised.

CONSEQUENCES of alternative work arrangements for people with disabilities

Compared to workers without disabilities, workers with disabilities are:

• Paid less in part-time and temporary jobs (about 25% less per week, and 5-17% less per hour)

• Less likely to have employer-provided pensions or health insurance

• More likely to live in poverty (no matter the type of job)

• More likely to stay in part-time jobs, but about as likely to move from temporary agency jobs to to standard full-time jobs

Key findings

Non-standard work arrangements:1. Account for almost half of the jobs of people with disabilities2. Appear to be driven mainly by health concerns, and not by

employer discrimination or disability income earnings thresholds

3. Provide lower pay and benefits to workers with disabilities than to non-disabled workers, leaving many in poverty

4. Provide important opportunities for many people with disabilities, enabling many to work who otherwise would not be employed