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The impact of diabetes on employment: genetic IVs in a bivariate probit

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  • H. Shelton Brown

    (University of Texas School of Public Health, School of Public Health Building (RAHC), Texas, USA)

  • José A. Pagán
  • Elena Bastida

    (Department of Sociology and Center on Aging and Health, University of Texas-Pan American, Texas, USA)

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    Abstract

    Diabetes has been shown to have a detrimental impact on employment and labor market productivity, which results in lost work days and higher mortality|disability. This study utilizes data from the Border Epidemiologic Study on Aging to analyze the endogeneity of diabetes in an employment model. We use family history of diabetes as genetic instrumental variables. We show that assuming that diabetes is an exogenous variable results in an overestimate (underestimate) of the negative impact of diabetes on female (male) employment. Our results are particularly relevant in the case of populations where genetic predisposition has an important role in the etiology of diabetes. Copyright © 2004 John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 14 (2005)
    Issue (Month): 5 ()
    Pages: 537-544

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    Handle: RePEc:wly:hlthec:v:14:y:2005:i:5:p:537-544

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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    1. Eva Pagano & Massimo Brunetti & Fabrizio Tediosi & Livio Garattini, 1999. "Costs of Diabetes: A Methodological Analysis of the Literature," PharmacoEconomics, Springer Healthcare | Adis, vol. 15(6), pages 583-595.
    2. Kahn, Matthew E, 1998. "Health and Labor Market Performance: The Case of Diabetes," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 878-99, October.
    3. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    4. William H. Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Further Results," The Journal of Economic Education, Taylor & Francis Journals, vol. 29(4), pages 291-300, January.
    5. Elena Bastida & José A. Pagán, 2002. "The impact of diabetes on adult employment and earnings of Mexican Americans: Findings from a community based study," Health Economics, John Wiley & Sons, Ltd., vol. 11(5), pages 403-413.
    6. Jill E. Lavigne & Charles E. Phelps & Alvin Mushlin & Wayne M. Lednar, 2003. "Reductions in Individual Work Productivity Associated with Type 2 Diabetes Mellitus," PharmacoEconomics, Springer Healthcare | Adis, vol. 21(15), pages 1123-1134.
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    Cited by:
    1. Rowell, David & Connelly, Luke, 2010. "Labour market outcomes for people with a spinal cord injury," Economics & Human Biology, Elsevier, vol. 8(2), pages 223-232, July.
    2. Ehsan Latif, 2009. "The impact of diabetes on employment in Canada," Health Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 577-589.
    3. Bergemann, Annette & Grönqvist, Erik & Gudbjörnsdottir, Soffia, 2011. "The effects of job displacement on the onset and progression of diabetes," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48695, Verein für Socialpolitik / German Economic Association.
    4. Antonella D’Agostino & Andrea Regoli, 2013. "Life Conditions and Opportunities of Young Adults: Evidence from Italy in European Comparative Perspective," Social Indicators Research, Springer, vol. 113(3), pages 1205-1235, September.
    5. Zhang, Xiaohui & Zhao, Xueyan & Harris, Anthony, 2009. "Chronic diseases and labour force participation in Australia," Journal of Health Economics, Elsevier, vol. 28(1), pages 91-108, January.
    6. Minor, Travis, 2013. "An investigation into the effect of type I and type II diabetes duration on employment and wages," Economics & Human Biology, Elsevier, vol. 11(4), pages 534-544.
    7. Silvia Balia & Andrew M Jones, 2005. "Mortality, lifestyle and socio-economic status," Health, Econometrics and Data Group (HEDG) Working Papers 05/02, HEDG, c/o Department of Economics, University of York.
    8. Veronesi, Marcella, 2007. "Environmental Risk Factors, Health and the Labor Market Response of Married Men and Women in the United States," Working Papers 98552, University of Maryland, Department of Agricultural and Resource Economics.
    9. Kavetsos, Georgios, 2011. "The impact of physical activity on employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 775-779.
    10. Edward C Norton & Euna Han, 2007. "Genetic Information, Obesity, and Labor Market Outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 07/15, HEDG, c/o Department of Economics, University of York.
    11. José A. Pagán & Andrea Puig & Beth J. Soldo, 2007. "Health insurance coverage and the use of preventive services by Mexican adults," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1359-1369.
    12. Morris, Stephen, 2007. "The impact of obesity on employment," Labour Economics, Elsevier, vol. 14(3), pages 413-433, June.
    13. Haan, Peter & Myck, Michal, 2009. "Dynamics of Poor Health and Non-Employment," IZA Discussion Papers 4154, Institute for the Study of Labor (IZA).
    14. Haan, Peter & Myck, Michal, 2009. "Dynamics of health and labor market risks," Journal of Health Economics, Elsevier, vol. 28(6), pages 1116-1125, December.
    15. Till Seuring & Yevgeniy Goryakin & Marc Suhrcke, 2014. "The impact of diabetes on employment in Mexico," Working Papers 100cherp, Centre for Health Economics, University of York.

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