The linkages between disability and health status and the returns to education and basic skills training were examined through an analysis of data from wave 3 of the 1993 panel of the Survey of Income and Program Participation and the 1992 National Adult Literacy Survey (NALS). The data sets were used to estimate standard wage equations with education and basic skills training among selected independent variables. The NALS data set made it possible to control for prose, quantitative, and document literacy. The wage equations relied on Heckit corrections for labor participation. The data were stratified by sex and by disability status. Overall, the returns to education for individuals with a disability or poor health proved positive, albeit of moderate size and equal to the returns for the nondisabled population. The analysis results underscored the importance of supply-side human capital investments for disabled individuals and policy options that maintain or improve access to and retention in educational opportunities. The returns to a year of education for disabled and nondisabled females alike were much larger than that for males. Basic skills training appeared especially advantageous for some individuals. Training in reading and mathematics appeared to have fairly large payoffs in terms of weekly earnings. (Contains 26 references.) (MN)