E C O N O M I C R E P O R T O F T H E P R E S I D E N T

long-term decline in the labor force participation of men, particularly oldermen, and the long-term increase in female labor force participation are alsoevident in the populations of disabled men and women, respectively. Overall,however, persons with disabilities have lower rates of labor force activity(whether working, looking for work, or laid off). They are limited in theirchoice of occupation, and they are less likely to work in higher payingoccupations than persons without disabilities. These limitations are particularlyevident for those with severe disabilities. In 1994, for example, only29.5 percent of adults aged 20-64 who had severe disabilities participated inthe labor market. In contrast, 84.5 percent of adults in that age groupwithout disabilities and 81.6 percent of those with moderate disabilitiesparticipated in the labor force. Despite some evidence of an upward trend inthe labor market activity of those with severe disabilities, there is ample roomfor improvement.The increasing importance, documented above, of education and ofcertain skills in the labor market will undoubtedly play an important rolein future labor market outcomes for the disabled. The rate of labor forceactivity of severely disabled workers with a college degree (52.4 percent)was more than 1.5 times that of comparable workers with only 12 years ofeducation (31.2 percent). It was about three times that of workers with lessthan 12 years of education (17.3 percent). Evidence also suggests that havingcomputer skills improves the labor market outcomes of workers withChapter 4 | 143