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Labour market discrimination on the basis of health: an application to UK data

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  • David Madden

Abstract

An analysis of wage discrimination is carried out on the basis of health on UK data with a number of important modifications. First selection is controlled for into both health and labour market status. Second the direct effect of health upon productivity is accounted for and third, discrimination is examined with regard to participation as well as wages. The question of selection into health status is found to be of little empirical importance but taking account of selection into labour market status and the direct impact of health upon productivity leads to a fall in measured discrimination. The paper finds similar results with regard to participation. It is also examined whether these effects differ across age and gender.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840410001682133
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 5 ()
Pages: 421-442

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Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:421-442

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References

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  1. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier.
  2. Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, vol. 18(2), pages 173-193, April.
  3. Daron Acemoglu & Joshua Angrist, 1998. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Working papers 98-13, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.
  5. B. Wolfe & S. C. Hill, . "The effect of health on the work effort of low-income single mothers," Institute for Research on Poverty Discussion Papers 979-92, University of Wisconsin Institute for Research on Poverty.
  6. Barbara L. Wolfe & Steven C. Hill, 1995. "The Effect of Health on the Work Effort of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 42-62.
  7. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  8. Chowdhury, Gopa & Nickell, Stephen, 1985. "Hourly Earnings in the United States: Another Look at Unionization, Schooling, Sickness, and Unemployment Using PSID Data," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 38-69, January.
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Citations

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Cited by:
  1. Jones, Melanie K. & Latreille, Paul L. & Sloane, Peter J., 2007. "Disability and Work: A Review of the British Evidence," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 473-498, Abril.
  2. CHOE, Chung & BALDWIN, Marjorie, 2011. "Estimates of Wage Discrimination Against Workers with Sensory Disabilities, with Controls for Job Demands," MPRA Paper 36242, University Library of Munich, Germany.
  3. Choe, Chung, 2009. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," IRISS Working Paper Series 2009-07, IRISS at CEPS/INSTEAD.
  4. Andrew M. Jones & Eddy van Doorslaer & Teresa Bago d'Uva & Silvia Balia & Lynn Gambin & Cristina Hernández Quevedo & Xander Koolman & Nigel Rice, 2006. "Health and Wealth: Empirical Findings and Political Consequences," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(s1), pages 93-112, 05.
  5. Saloniki, E-C.; & Gosling, A.;, 2013. "Point identification in the presence of measurement error in discrete variables: application - wages and disability," Health, Econometrics and Data Group (HEDG) Working Papers 13/16, HEDG, c/o Department of Economics, University of York.
  6. Haile, Getinet Astatike, 2009. "Workplace Disability Diversity and Job-Related Well-Being in Britain: A WERS2004 Based Analysis," IZA Discussion Papers 3993, Institute for the Study of Labor (IZA).
  7. Pagán, Ricardo, 2013. "Time allocation of disabled individuals," Social Science & Medicine, Elsevier, vol. 84(C), pages 80-93.
  8. BALDWIN Marjorie L. & CHOE Chung, 2010. "New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands," CEPS/INSTEAD Working Paper Series 2010-14, CEPS/INSTEAD.
  9. Jones, Melanie K., 2006. "Is there employment discrimination against the disabled?," Economics Letters, Elsevier, vol. 92(1), pages 32-37, July.
  10. David R. Mann & David C. Wittenburg, 2014. "Explaining Differentials in Employment and Wages Between Young Adults with and Without Disabilities," Mathematica Policy Research Reports 8112, Mathematica Policy Research.
  11. Madden, D. & Walker, I., 1999. "Labour Supply, Health and Caring: Evidence from the UK," Papers 99/28, College Dublin, Department of Political Economy-.
  12. Haile, Getinet Astatike, 2009. "Unhappy Working with Men? Workplace Gender Diversity and Employee Job-Related Well-Being in Britain: A WERS2004 Based Analysis," IZA Discussion Papers 4077, Institute for the Study of Labor (IZA).

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