Determinants of Labor Force Participation Among People with Disability in South Korea

Background/Purpose

This study aims to compare the employment quality (EQ) among people with disabilities (PwD) across different cohorts, in order to examine the extent to which disability employment policies have contributed to improving their EQ. Over the past decade, South Korea has implemented disability employment policy reforms, including the expansion of vocational rehabilitation services, increased quotas for PwD, and targeted support programs. However, it remains unclear how these policy changes have affected the actual EQ among PwD. The study adopts a comparative cohort design to examine differences in EQ trajectories between two cohorts—before and after the recent wave of policy implementation—and to analyze the determinants of EQ trajectories.

Methods

The study utilizes data from the Panel Survey of Employment for the Disabled (PSED), using the first wave (2012–2015) for the first cohort and the second wave (2020–2023) for the second cohort to enable a longitudinal comparison of employment trajectories over four-year periods in each cohort. To identify the pure policy impact on waged PwD, Propensity Score Matching (PSM) was conducted between the two cohorts, resulting in 864 respondents in the first cohort and 889 in the second. Moreover, in order to analyze distinct patterns of EQ over time, the study applies Group-Based Trajectory Model (GBTM), which allows for the classification of individuals into homogeneous EQ trajectories. To examine the predictors of trajectory groups, Multinomial Logistic Regression is conducted.

Results

This study’s primary findings are as follows: First, according to GBTM result, the proportion in stable employment positions increased from 76.5% in the first wave to 79.7% in the second wave. Second, regarding health characteristics, in the first wave, owing to the presence of chronic disease, the likelihood of belonging to the low EQ group increased (rrr=1.770, p<0.05); in the second wave, as subjective health status increased, the likelihood of belonging to the low EQ group decreased (rrr=0.402, p<0.01). Third, in the second wave, as age increased, the likelihood of belonging to the low EQ group increased compared to the high EQ group (rrr=3.445, p<0.001). Lastly, in the first wave, PwD with basic job competencies—such as ADL and interpersonal and organizational adaptation skills— were less likely to be in the lower EQ group (rrr=0.653, p<0.001). By contrast, in the second wave, PwD with advanced job competencies—such as computer and foreign language abilities— were less likely to be in the lower EQ group (rrr=0.667, p<0.05).

Implications

First, although the employment rate for PwD has increased, their EQ remains low. Therefore, qualitative factors—such as job stability, compensation, and working conditions—should be included in mandatory employment quotas. Second, since education on job skills is important in this study, specialized training programs tailored to disability type and degree should be developed and implemented. Third, accommodations are positively linked to improved subjective health status and EQ scores, so workplaces should make accommodations to support the health of PwD. Lastly, as aging increases the likelihood of being in the low EQ group, protecting older adult workers is crucial to preventing their exit from the labor market.