The Impact of Education and Occupation on Temporary and Permanent Work Incapacity
AbstractThis paper investigates whether education and working in a physically demanding job causally impact temporary work incapacity, i.e. sickness absence, and permanent work incapacity, i.e. the inflow to disability via sickness absence. Our contribution is to allow endogeneity of both education and occupation by estimating a quasi-maximum-likelihood discrete factor model. Data on sickness absence and disability spells for the population of older workers come from the Danish administrative registers for 1998-2002. We generally find an independent role of both education and occupation on temporary work incapacity only. Having at least primary education reduces women's (men's) probability of temporary work incapacity by 16% (38%) while working in a physically demanding job increases it by 37% (26%). On the other hand, conditional on sickness absence, the effects of education and occupation on permanent work incapacity are generally insignificant.
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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2012-25.
Date of creation: 02 Nov 2012
Date of revision:
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Web page: http://www.econ.au.dk/afn/
Work incapacity; education; occupation; factor analysis; discrete factor model;
Other versions of this item:
- Datta Gupta, Nabanita & Lau, Daniel & Pozzoli, Dario, 2012. "The Impact of Education and Occupation on Temporary and Permanent Work Incapacity," IZA Discussion Papers 6963, Institute for the Study of Labor (IZA).
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- I20 - Health, Education, and Welfare - - Education - - - General
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-11 (All new papers)
- NEP-HRM-2012-11-11 (Human Capital & Human Resource Management)
- NEP-LAB-2012-11-11 (Labour Economics)
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