Labour Market Decisions of Australian Families Coping With Mental and Physical Disabilities

This paper examines the labour market decisions of family members of individuals afflicted with a disability. The analysis, based on data collected in the Survey of Disability, Ageing and Carers 2003, is confined to family members of working age who reside with a person of disability. The investigation segregates by disability (mental and physical), reflecting different resource requirements. The study found that the presence of a mentally disabled family member increased the value of unpaid work of others in the home and reduced their propensity to participate in the labour force. Of families afflicted with a mental disability, females were less likely to participate in the labour force compared to females in other families. Male members of families afflicted with a mental disability were likely to withdraw from the labour market when receiving a government transfer payment - possibly reflecting the limited care resources within these families.