Is entrepreneurship an economic remedy for people with disabilities? Evidence on earnings and job satisfaction

초록

So … Is Entrepreneurship the Answer for People with Disabilities? Not So Fast. People with disabilities (PWDs) are often encouraged to “build your own path” when faced with labor market discrimination. It’s an empowering idea, but our data shows the reality is more complicated. Yes, PWDs are more likely to start businesses or join startups. But no, these paths don’t erase the disability earnings penalty. In fact, the penalty is larger in entrepreneurship, and startup jobs don’t reduce it either. What PWDs seem to gain instead are the non-pecuniary upsides. So, what can you do with this insight? For people with disabilities: If you’re considering starting a business, go in with eyes wide open. Entrepreneurship may offer freedom and meaningful work, but not higher pay. Choose it for the innate satisfaction it gives you, not because it promises better financial outcomes. Let purpose, not pressure, guide the decision. For entrepreneurs: If you want to attract PWDs, focus on what draws them in. You don’t need a big program – small design choices matter. Loosen rigid job structures, give people more say in how they work, and open conversations about what makes work enjoyable. Startups already have an edge here, so use it before PWDs feel they must create their own venture to get these benefits. For policymakers: Stop treating entrepreneurship as the go-to economic solution for PWDs. It isn’t. Instead focus on improving existing workplaces so PWDs don’t have to leave traditional jobs to find satisfying careers. More flexible roles, more discretion, and more inclusive work design would make entrepreneurship a choice, not a necessity.