This literature review aims to provide the basis for informed and detailed discussions of what kinds of strategies employers would respond to in hiring and retaining employees with disabilities, including any contribution the Vocational Education and Training (VET) sector might make. The review begins with discussion of the international and national policy context for this study. Governments' twin policy objectives of social inclusion (encompassing access, equity and social justice considerations) and economic development are canvassed. The review then moves onto consideration of the dynamics of employment in general, before consideration of the research literature on disability employment issues. A section highlights some good news stories in disability employment--before the final summing up. This literature review is a support document for the project report "What would it take? Employer perspectives on employing people with a disability." [For the main report, see ED508544.]