Abstract
Around the world, people with disabilities (PWDs) face discrimination in the labor market. In this paper, we examine whether entrepreneurship and wage employment at startups provide PWDs with attractive alternatives to pursuing wage employment at large and incumbent firms. Using the economic theory of occupational choice, we hypothesize that the existence of labor market discrimination will push PWDs into pursuing entrepreneurship or joining startups as wage employees, and that the wage penalty that PWDs face will be smaller in these occupations compared to wage employment at large and incumbent firms. Using data from the National Survey of College Graduates, we find that while PWDs are more likely to pursue entrepreneurship or join startups, the main reason for doing so is likely to be to enjoy the non-pecuniary benefits of pursuing entrepreneurship (or working for a startup) as opposed to the pecuniary benefits.
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