Theoretical and Applied Issues in Defining Disability in Labor Market Research

The contribution of disability to labor market behavior is a subject of considerable attention. Notwithstanding this tremendous interest, a great deal of variation exists in the use of terms such as health, impairment, and disability. Consequently, comparing results across studies is often difficult, and the impact empirical research can have on policy making is diminished. This article outlines the conceptual issues involved in defining disability, reviews definitions of disability commonly used in empirical labor market research and by policy makers, examines the problems that accompany the use of the various methods, and offers some thoughts for future work in the area of defining disability.