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Health and Wages: Panel Data Estimates Considering Selection and Endogeneity

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  • Robert Jäckle
  • Oliver Himmler

Abstract

This 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 Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 45 (2010)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:45:y:2010:i2:p364-406

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References

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Citations

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Cited by:
  1. Katja Görlitz, 2010. "Continuous Training and Wages – An Empirical Analysis Using a Comparison-group Approach," Ruhr Economic Papers 0197, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Pouliakas, Konstantinos & Panos, Georgios & Zangelidis, Alexandros, 2009. "The Inter-Related Dynamics of Dual Job Holding, Human Capital and Occupational Choice," MPRA Paper 16859, University Library of Munich, Germany.
  3. Johannes Geyer, 2011. "The Effect of Health and Employment Risks on Precautionary Savings," Discussion Papers of DIW Berlin 1167, DIW Berlin, German Institute for Economic Research.
  4. Forbes, Matthew & Barker, Andrew & Turner, Stewart, 2010. "The Effects of Education and Health on Wages and Productivity," Staff Working Papers 101, Productivity Commission, Government of Australia.
  5. Drydakis, Nick, 2013. "The Effect of Sexual Activity on Wages," IZA Discussion Papers 7529, Institute for the Study of Labor (IZA).
  6. Fomba Kamga, Benjamin & Kengne Kamga, Arline & Audibert, Martine, 2013. "Health and Labour Income of Wage Earners and Self-Employed Workers in Cameroon," IZA Discussion Papers 7324, Institute for the Study of Labor (IZA).
  7. Wunder, Christoph & Wiencierz, Andrea & Schwarze, Johannes & Küchenhoff, Helmut & Kleyer, Sara & Bleninger, Philipp, 2009. "Well-Being over the Life Span: Semiparametric Evidence from British and German Longitudinal Data," IZA Discussion Papers 4155, Institute for the Study of Labor (IZA).
  8. 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.
  9. M. Angeles Carnero Fernández & Blanca Martínez & Rocío Sánchez Mangas, 2010. "Mobbing and workers' health: an empirical analysis for Spain," Working Papers. Serie AD 2010-30, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  10. 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.
  11. Laurent Lequien, 2012. "Parental Leave Duration and Wages: A Structural Approach," Working Papers 2012-04, Centre de Recherche en Economie et Statistique.

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