This study ¹ examined the relationship between chronic conditions, disabilities, and labor force participation (LFP) and earnings for those aged 50 and above.

Using the 2008 American Community Survey (ACS), we analyzed LFP rates and earnings among disabled and nondisabled older Americans by type of disability. The analysis included both descriptive statistics and a two-staged multivariate analysis.

We found that disabilities had a negative impact on LFP and earnings and that this impact varied significantly by type of disability. Older labor force participants often have only one of the six ACS-defined disabilities, but many have multiple disabilities, or co-occurrences. The particular ACS disability, or set of disabilities, is likely to have different effects on LFP as people age. Additionally, certain kinds of chronic medical conditions increase the likelihood of disability co-occurrence.

Our results inform the development of programs and policies aimed at improving the health of American workers in ways that extend the years in which they are able to remain in the labor force. For example, if older workers remain in the labor force, their economic contribution to the American economy, combined with a lower rate of reliance on public health subsidies, may result in significant cost savings.