From Welfare to Work and From Work to Welfare: A Comparison of People With and Without Disabilities

Abstract

In this study, we explore the behavioral factors that play a role in the decision—among people with and without disabilities—to move from welfare to work and from work to welfare. A survey of people with and without disabilities in Israel was conducted; a nonprobability quota sample of 193 individuals was drawn (95 people with disabilities and 98 nondisabled people). The data were collected by means of a closed-ended questionnaire. The results show that people with disabilities tended more than nondisabled persons to favor decisions that maintain their current employment status quo bias). Furthermore, compared with nondisabled individuals, people with disabilities demanded more wages or benefits while changing status in the labor market. The more years of education people with disabilities have, the less incentive is needed to resume or begin working. In addition, the noneconomic value of work is higher among more-educated people compared with less-educated people with disabilities. The results emphasize the need to design various policies to lower the status quo bias effect, especially, among people with disabilities. Maintaining employment status among this population, and promoting their education level, should be central rehabilitation priorities.