Health and Wages: Panel Data Estimates Considering Selection and Endogeneity
AbstractThis paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP), we find the health variable to suffer from measurement error and a number of tests provide evidence that selection corrections are necessary. Good health leads to higher wages for men, while there appears to be no significant effect for women. Contingent on the method of estimation, healthy males earn between 1.3 percent and 7.8 percent more than those in poor health.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 45 (2010)
Issue (Month): 2 ()
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Web page: http://jhr.uwpress.org/
Other versions of this item:
- Jäckle, Robert & Himmler, Oliver, 2007. "Health and Wages - Panel data estimates considering selection and endogeneity," MPRA Paper 11578, University Library of Munich, Germany, revised Nov 2008.
- 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.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- I10 - Health, Education, and Welfare - - Health - - - General
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
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