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Obesity and labour market outcomes in Italy: a dynamic panel data evidence with correlated random effects

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  • Antonio Pacifico

    (University of Macerata)

Abstract

This paper investigates the effects of obesity, socio-economic variables, and individual-specific factors on work productivity across Italian regions. A dynamic panel data with correlated random effects is used to jointly deal with incidental parameters, endogeneity issues, and functional forms of misspecification. Methodologically, a hierarchical semiparametric Bayesian approach is involved in shrinking high dimensional model classes, and then obtaining a subset of potential predictors affecting outcomes. Monte Carlo designs are addressed to construct exact posterior distributions and then perform accurate forecasts. Cross-sectional Heterogeneity is modelled nonparametrically allowing for correlation between heterogeneous parameters and initial conditions as well as individual-specific regressors. Prevention policies and strategies to handle health and labour market prospects are also discussed.

Suggested Citation

  • Antonio Pacifico, 2023. "Obesity and labour market outcomes in Italy: a dynamic panel data evidence with correlated random effects," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(4), pages 557-574, June.
    • Handle: RePEc:spr:eujhec:v:24:y:2023:i:4:d:10.1007_s10198-022-01493-3
    DOI: 10.1007/s10198-022-01493-3
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    More about this item

    Keywords

    Bayesian inference; MCMC algorithms; Density forecasts; Heterogeneous effects; Healthcare Statistics; Work productivity;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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