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Previous modelling of the impact of disability on employment has failed to allow for a direct effect rendering some … individuals capable of work. A model in which both a capacity and a desire for work are necessary conditions for employment is … failure to allow for it results in overestimation of the wage elasticity of employment. The accuracy of self-reported capacity …
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shape employment outcomes. This paper investigates this issue within a model that incorporates learning about ability on the … which pay incentives affect employment outcomes, profits, and compensation. Under the implemented and the profit …
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