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Effects of Health on Wages of Australian Men

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  • LIXIN CAI

Abstract

This study uses the Household, Income and Labour Dynamics in Australia (HILDA) survey to investigate the effect of health on wages of working-age Australian men. A simultaneous equation model of health and wages is estimated to account for the endogeneity of health. The results confirm the findings in the literature that health has a significant and positive effect on wages; it is also found that treating health as exogenous underestimates the effect substantially. Although the reverse effect of wages on health is found to be insignificant, there is evidence on the endogeneity of health arising from unobserved factors. Copyright © 2009 The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 85 (2009)
Issue (Month): 270 (09)
Pages: 290-306

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Handle: RePEc:bla:ecorec:v:85:y:2009:i:270:p:290-306

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  5. Kreider, Brent, 1999. "Latent Work Disability and Reporting Bias," Staff General Research Papers 5185, Iowa State University, Department of Economics.
  6. Gerdtham, U. -G. & Johannesson, M. & Lundberg, L. & Isacson, D., 1999. "A note on validating Wagstaff and van Doorslaer's health measure in the analysis of inequalities in health," Journal of Health Economics, Elsevier, vol. 18(1), pages 117-124, January.
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  24. Berta Rivera & Luis Currais, 1999. "Economic growth and health: direct impact or reverse causation?," Applied Economics Letters, Taylor & Francis Journals, vol. 6(11), pages 761-764.
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Citations

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Cited by:
  1. Robert Jäckle, 2007. "Health and Wages - Panel data estimates considering selection and endogeneity," Ifo Working Paper Series Ifo Working Paper No. 43, Ifo Institute for Economic Research at the University of Munich.
  2. Manuel Flores & Adriaan Kalwij, 2013. "What do wages add to the health-employment nexus? Evidence from older European workers," Documentos de trabajo - Analise Economica 0054, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  3. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.
  4. Lixin Cai, 2008. "Be Wealthy to Stay Healthy: An Analysis of Older Australians Using the HILDA Survey," Melbourne Institute Working Paper Series wp2008n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  5. Gail Pacheco & Don J. Webber, 2011. "Employment propensity: The roles of mental and physical health," Working Papers 2011-01, Auckland University of Technology, Department of Economics.
  6. Yolanda Pena-Boquete & Manuel Flores, 2013. "Earnings returns to education, experience and health: Evidence from EU-SILC," ERSA conference papers ersa13p1169, European Regional Science Association.

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