Labor market impacts of employment quotas for the disabled in Brazil

The occupational achievements of people with disabilities and those with less severe functional limitations are analyzed before and after the implementation of employment quotas. The differentials are decomposed into (i) productive or socioeconomic factors; and (ii) unobservable factors such as discrimination and other social constraints. The unobservable difficulties, which play an important role in determining differences in employment rates, reduced substantially, especially for people with more severe limitations. However, while these workers continue to obtain low paid jobs, those most qualified with less severe limitations attained better occupational positions, and hence, higher wages.