Conclusions

This concluding chapter offers a summary of the key findings of this book. The main theoretical contribution of this study is the use of the “law of one unemployment rate” to explain the differences in and convergence of the unemployment rates for various demographic groups. Also, a modified Acemoglu’s two-sector search model was adopted to analyse the differences between “bad” jobs and “good” jobs in the labour market. The modified framework incorporates the “procyclical” assumption into the original model in order to allow for the exploration of differences in labour market outcomes and their impact on workers with disabilities and workers without disabilities. A practical contribution of this book is the finding that the search subsidy is the most effective labour market intervention policy as people with disabilities suffer from high unemployment due to high job destruction.