The Nexus between Disability, Education, and Employment: Evidence from Nepal

The links between disability, education, and employment remain unclear in developing countries due to the lack of credible data. This paper identifies and compares the effect of education on employability, employment status (full-time or part-time), job type (white collar or blue collar), and job satisfaction among persons with disabilities using a unique data-set of over 400 respondents with hearing, physical, and visual impairments in Nepal. The analysis also utilizes nationally representative survey data from the Nepal Living Standard Survey 2010/2011 (NLSS III) for a robustness test. Results show a positive correlation between years of schooling and the likelihood of obtaining a full-time and white-collar job. Regarding the type of impairment, those with physical impairments are less likely to be employed when individual characteristics are controlled, but report higher levels of job satisfaction when they are employed. Results thus suggest the need to invest further in education for persons with disabilities, in order to increase their participation within the labor market.