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Dynamics of Work-Limitation and Work in Australia

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Author Info
Umut Oguzoglu () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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Abstract

This paper examines the impact of self-reported work-limitation on the employment of the Australian working age population. Five consecutive waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey are used to investigate this relationship. A two-equation dynamic panel data model demonstrates that persistence and unobserved heterogeneity play an important role in the work-limitation reporting and its effect on work. Unobserved factors that jointly drive work-limitation and work are also shown to be crucial, especially for women.

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Publisher Info
Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2007n10.

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Length: 29 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:iae:iaewps:wp2007n10

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
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Related research
Keywords: Work-limitations; dynamic panel probit; Maximum Simulated Likelihood;

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  1. Alessie, Rob & Stefan Hochguertel & Arthur van Soest, 2002. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," Royal Economic Society Annual Conference 2002 3, Royal Economic Society. [Downloadable!]
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  2. Kapteyn, Arie & Smith, James P. & Soest, Arthur van, 2006. "Dynamics of work disability and pain," Discussion Paper 22, Tilburg University, Center for Economic Research. [Downloadable!]
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  3. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier. [Downloadable!] (restricted)
  4. Roger Wilkins, 2004. "The Effects of Disability on Labour Force Status in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(4), pages 359-382, December. [Downloadable!] (restricted)
  5. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54. [Downloadable!]
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  6. Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348. [Downloadable!] (restricted)
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