Hierarchy of Impairment and Labor Market Vulnerability in Disability Employment Policy: Focus on the Impact of the Double Count Policy for Severely Disabled Workers

Abstract

This study analyzes the impact of the Double Count Policy for Severely Disabled Workers, introduced in South Korea. Using the first wave of the Panel Survey of Employment for the Disabled, we employed propensity score matching, difference-in-differences (DID), and triple differences (DDD) methods to examine the policy’s effects. Our findings demonstrate that while the policy increased overall employment among severely disabled workers, it unexpectedly decreased their likelihood of securing permanent employment and failed to generate significant improvements in wages and occupational status. In our analysis by disability type, severely disabled workers with sensory impairments and internal disabilities showed lower employment outcomes compared to those with external physical disabilities, while workers with mental disabilities consistently demonstrated the lowest performance across all indicators. These results suggest that although the policy contributed to quantitative employment growth for severely disabled workers, it improved neither employment stability nor job quality to any significant extent. Furthermore, the policy's varying impact across disability types indicates that it has inadvertently reproduced existing hierarchies of impairment in the labor market. This study makes a significant contribution by examining the policy's effects using individual-level data and causal inference methods, revealing its limitations in addressing labor market vulnerabilities and suggesting additional policy measures.