The labor supply of disabled people

This paper develops a framework to investigate family labor supply decisions in a household where a person with disability lives. The study is based on a neoclassical structural labor supply model in which the households are decision makers and their utility depends on income, time of cares for the person with disability and other characteristic of the job developed for this per- son. The utility maximization problem is solved for a discrete set of job alternatives choosing the optimal job package which is de ned by wage (which allow a concrete income) and time of cares (which is related to working time in each alternative). We use data from a sample of 4.790 households in Spain obtained from the Spanish Survey of Disabilities and Attention to the Dependency (EDAD-08). We nd di erent aspects of time of informal care to be associated with the intention to participate in labor market or to chose between jobs. We show that shifts work has less probability to be chosen because it has a negative impact on workers's wealth that must be compensated with higher income and less working hours. Factors such as age or limitation level a ect signi cantly the choice between jobs. There is some variation in the responsiveness to income changes by type of job, being the highest e ect for shifts working. In the case of a variation in the time of cares, all the job-speci c elasticities are negatives, and conditioned to those already participating in labor market, the e ect is also higher for the shift working