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The dynamic effect of disability on work and subjective well-being

Author

Listed:
  • Melanie Jones
  • Kostas Mavromaras
  • Peter J Sloane
  • Zhang Wei

Abstract

Using longitudinal data from the Household, Income, and Labour Dynamics in Australia (HILDA) Survey (2001–2013), we examine the relationship between the dynamics of work-limiting disability, employment, and life satisfaction. By employing two alternative classifications of the dynamic trajectories of disability, we are able to explicitly consider the influence of disability exit in addition to examining onset by chronicity and severity. After controlling for unobserved individual heterogeneity, we find pronounced declines in the probability of employment and life satisfaction at disability onset. Further, while individuals are found to recover rapidly and completely from a one-period disability, there is little evidence of recovery even after 10 years for those whose disability is chronic, defined as evident for three or more years post-onset, and severe.

Suggested Citation

  • Melanie Jones & Kostas Mavromaras & Peter J Sloane & Zhang Wei, 2018. "The dynamic effect of disability on work and subjective well-being," Oxford Economic Papers, Oxford University Press, vol. 70(3), pages 635-657.
    • Handle: RePEc:oup:oxecpp:v:70:y:2018:i:3:p:635-657.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy006
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    Citations

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    Cited by:

    1. Katherine Farrow & Gilles Grolleau & Lisette Ibanez, 2022. "Does misery love company? An experimental investigation [How much do we care about absolute versus relative income and consumption?]," Oxford Economic Papers, Oxford University Press, vol. 74(2), pages 523-540.
    2. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    3. Mussida, Chiara & Sciulli, Dario, 2023. "The evolution of income distribution and disability in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 29-38.
    4. Melanie K Jones & Duncan McVicar, 2022. "The dynamics of disability and benefit receipt in Britain [Large sample properties of matching estimators for average treatment effects]," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 936-957.
    5. Paul McNamee & Silvia Mendolia & Oleg Yerokhin, 2021. "The transmission of partner mental health to individual life satisfaction: Estimates from a longitudinal household survey," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(4), pages 494-516, September.
    6. Platt, Lucinda & Warwick, Ross, 2020. "COVID-19 and ethnic Inequalities in England and Wales," LSE Research Online Documents on Economics 105576, London School of Economics and Political Science, LSE Library.
    7. David W. Johnston & Olena Stavrunova, 2021. "Subjective Wellbeing Dynamics," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 518-529, December.
    8. Tianxin Pan & Michael Palmer & Ajay Mahal & Peter Annear & Barbara McPake, 2020. "The long‐run effects of noncommunicable disease shocks," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1549-1565, December.
    9. Danusha Jayawardana & Brenda Gannon & Jenny Doust & Gita D. Mishra, 2023. "Excess healthcare costs of psychological distress in young women: Evidence from linked national Medicare claims data," Health Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 715-734, March.
    10. Lucinda Platt & Ross Warwick, 2020. "COVID‐19 and Ethnic Inequalities in England and Wales," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 259-289, June.

    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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