This study examines the effects of disability on employment status and changes in these effects over time in South Africa by applying a pseudo-panel approach based on annual cross-section surveys from 2002 to 2015. Pseudo-panel regression models are separately estimated for the periods 2002-08 and 2009-15 due to inconsistencies in the disability question in these surveys. The main finding in both periods is that the effects of disability are significantly negative for the probability of being employed and significantly positive for the probability of being economically inactive. These effects are found to be underestimated by the conventional OLS regression, which may be attributed to the measurement errors associated with disability status. It could not be confirmed that the effect of disability on the probability of being employed was mitigated in 2002-08 and 2009-15.
Keywords: Disability, Employment, South Africa, Pseudo-panel approach