The Employment Effect of the Employment Rate System for Persons with Disabilities in Japan

We investigate the effects of the 2010 and 2013 reforms to the Employment Rate System for Persons with Disabilities on the employment of persons with disabilities using aggregate data and micro data of enterprises. An analysis of the aggregate data examining the types of disabilities most affected by the reforms indicates that the 2010 reforms positively affected full-time employment of persons with severe intellectual disabilities and mental disorders. An analysis of the same data indicates that the 2013 reform did not affect employment for persons with any type of disability. According to the micro data of enterprises, however, the 2013 reforms promoted the employment of the disabled at the target enterprises, that is, enterprises with 50 or more employees. Hence, we conclude that the Employment Rate System in Japan has had certain positive effects on the employment of persons with disabilities