The paper explains the low wages of the disabled in a monopsonistic framework. In the disabled market firms face different costs of adjustment ("disabled-friendly" firm vs. "disabled-unfriendly" firm), high or low, and offer wages according to these costs. Hence, there will be high- and low-paid...

Although a number of papers in the literature have shown the employment and wage differences between disabled and non-disabled individuals, not much is known about the potential employment and wage losses that disabled individuals suffer before being officially accepted into the disability...