Studies finding a negative effect of the Americans with Disabilities Act (ADA) on the employment of people with disabilities have used the work disability measure, which has several potential problems in measuring employment trends. Using Survey of Income and Program Participation (SIPP) data that permit alternative measures of disability, this study finds decreased employment among those reporting work disabilities in the first few years after the ADA was passed but increased employment when using a more probably appropriate measure of ADA coverage (functional and activity limitations that do not prevent work). State‐by‐state variation in labor market tightness is used to find that people with disabilities may have especially procyclical employment, but the contrary results in overall employment trends remain after accounting for labor market tightness. Given the problems in measuring who is covered by the ADA, there is reason to be cautious of both positive and negative findings.
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