The Economic Effect of Income Security and Welfare Measures for the Persons with Disabilities

This article investigates the reasoning for income security and its redistributive effect for the disabled, and analyses the economic effects of the work support to the person with disabilities and barrier-free measures to employment of them. As a result of estimation of the marginal utility of income for the disabled with that of general household based on the demand system estimation, the income transfer to the person with disabilities has a economic basis. Furthermore, calculations of the relative poverty rates with and without income security for the disabled persons shows us the improvement in relative poverty rate by the income security for the disabled. By enhancing the economic growth model of Zon and Muysken 2005 so that it can include not only the contribution of the disabled but also that of the persons engaged with work support to production of the goods, we can find out the effects of work support for the person with disabilities on consumption growth rate. Furthermore, by making a regression analysis between the change in employment of the person with disabilities and barrier-free measures, those measures have positive influences on the employment of the disabled. ∗ The author would like to express his appreciation for obtaining consent to use part of the estimation results in this article. A research grant for estimation work was obtained as part of the Research on Economy and Disability (READ), University of Tokyo, funded by a grant from the Scientific Research Program (Creative), the Japan Society for the Promotion of Science. It should also be noted that the author is responsible for the estimation results, of course, and that the opinions expressed in this article are not those of the organization with which the author is affiliated. ∗∗ This Paper may not be reproduced or distributed without the written consent of the author. Correspondence: [email protected]