Disability onset, earnings and income dynamics: examining the role of hearing loss in working-age adults

Disability imposes substantial social and economic costs, particularly in developed countries like Australia. In this paper, we estimate the longitudinal association between the onset of hearing loss and both earnings and income using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. We used the propensity score matching with difference-in-difference (PSM-DID) method to estimate how the onset of hearing loss influences longitudinal earnings and income. We applied fixed-effect regression to estimate relative earnings and income mobility before and after the onset of hearing loss. We conducted a subgroup analysis to investigate sociodemographic heterogeneity in hearing loss-associated earnings and income dynamics over time. We found that the onset of hearing loss is associated with a significant decline in earnings and income, even 15 years after the onset of hearing loss. Our findings indicate that earnings and income losses were more pronounced among socioeconomically disadvantaged individuals. These findings have significant implications for informing policy aimed at supporting the economic well-being of individuals with hearing loss.