CANADIANS WITH DISABILITIES AND THE LABOR-MARKET

The master file of the Labour Market Activity Survey is used to invest igate the effect of disability on labour market activity. Our results indicate the importance of acknowledging the severity of disability, o f distinguishing between men and women, and of distinguishing between earnings and hours of work when considering the labour market performa nce of Canadians with functional limitations. Employment policies dire cted toward Canadians with disabilities should therefore recognize the heterogeneity of this group and consider alternative initiatives to a id those with differing severity of functional limitations. The paper finds no evidence of earnings discrimination against employed men and women with disabilities, although these results must be interpreted ca utiously.