A Hidden Market: The Purchasing Power of Working-Age Adults With Disabilities
Authors: Michelle Yin, Dahlia Shaewitz, Christin Overton, & Deeza-Mae Smith Year: 2018 | Type: Research Report Published by:American Institutes for Research (AIR)
$490B
Total After-Tax Income
$21B
Total Discretionary Income
24M+
Working-Age Adults w/ Disabilities
Abstract
This report quantifies the purchasing power of working-age adults with disabilities in the United States, revealing a significant and largely untapped consumer market. With a total after-tax income of $490 billion and discretionary income of $21 billion, people with disabilities represent a substantial economic force. The study challenges common assumptions about the economic participation of people with disabilities and makes a compelling case for businesses to recognize and serve this market segment.
Key Findings
$490 billion in after-tax income: Working-age adults with disabilities collectively hold $490 billion in total after-tax income, representing a major segment of consumer spending power.
$21 billion in discretionary income: After covering essential expenses, this population retains approximately $21 billion in discretionary spending power available for goods and services.
Significant consumer market: The disability community represents a consumer market comparable in size to other major demographic segments frequently targeted by businesses.
Untapped business opportunity: Despite their substantial purchasing power, people with disabilities remain an overlooked and underserved market, presenting significant opportunities for businesses that prioritize accessibility and inclusion.
Extended market influence: The economic influence extends beyond individuals with disabilities to their families, friends, and caregivers, who often make purchasing decisions based on accessibility and inclusion.
Purchasing Power of Working-Age Adults With Disabilities
Dollar amounts in billions
Market Summary
Metric
Value
Total After-Tax Income
$490 billion
Total Discretionary Income
$21 billion
Working-Age Adults With Disabilities
24+ million
Market Segment Comparison
Comparable to major demographic segments
Data & Methods
This study uses data from the U.S. Census Bureau's American Community Survey (ACS) and the Bureau of Labor Statistics' Consumer Expenditure Survey (CEX) to estimate the total after-tax income and discretionary income of working-age adults (ages 18-64) with disabilities. Discretionary income is calculated by subtracting essential expenditures (housing, food, healthcare, transportation) from total after-tax income.
Implications
Recognize the disability market. Businesses should acknowledge the significant purchasing power of people with disabilities and develop strategies to serve this market through accessible products, services, and marketing.
Invest in accessibility. Companies that invest in accessible design and inclusive business practices can tap into a $490 billion market while fostering brand loyalty among consumers with disabilities and their networks.
Expand employment opportunities. Increasing employment for people with disabilities would further grow their purchasing power, benefiting both individuals and the broader economy.
Citation
Yin, M., Shaewitz, D., Overton, C., & Smith, D. (2018). A Hidden Market: The Purchasing Power of Working-Age Adults With Disabilities. American Institutes for Research.