Inequality in labour market opportunities for people with disabilities: Evidence for six Latin American countries

Abstract

In Latin America, approximately 70 million individuals live with a disability. Although global evidence suggests that people with disabilities are one of the poorest groups and present lower employment rates, the evidence for Latin America is still weak. This article aims to contribute to the literature by estimating and analysing the levels of employment opportunity for persons with disabilities in six countries in Latin America (Chile, Bolivia, Mexico, Peru, Colombia, and Costa Rica). Using household survey data, we measure inequality of opportunities using the Paes de Barros approach and compare the probability distributions of being employed for people with disabilities according to different individual characteristics. This research makes several contributions to the literature. First, it analyses and compares the characteristics of persons with disabilities in six countries of the region. Second, it is the first paper in the region that computes and compares the levels of employment opportunities for persons with disabilities, using the Human Opportunity Index. Third, it analyses which are the main aspects contributing to the levels of employment opportunities for persons with disabilities in each of the countries. The main results of the study reveal that people with disabilities face high levels of inequality of employment opportunity compared with people without disabilities in the six countries. Peru shows the lowest disadvantage, with higher coverage of opportunities for people with disabilities. Colombia and Costa Rica were the countries where this group presents the largest disadvantages to be employed. In addition, women with disabilities and people with disabilities living in rural areas have a lower probability of being employed compared with people without disabilities. These findings reveal that policies in the region aiming to include this group in the labour market have not been effective, and there is a necessity to guarantee the proper labour inclusion of this group.