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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6963.
Length: 51 pages
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Nabanita Datta Gupta & Daniel Lau & Dario Pozzoli, 2012. "The Impact of Education and Occupation on Temporary and Permanent Work Incapacity," Economics Working Papers, School of Economics and Management, University of Aarhus 2012-25, School of Economics and Management, University of Aarhus.
- 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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hogelund, Jan & Holm, Anders, 2006.
"Case management interviews and the return to work of disabled employees,"
Journal of Health Economics,
Elsevier, vol. 25(3), pages 500-519, May.
- Jan HÃ¸gelund & Anders Holm, 2004. "Case Management Interviews and the Return to Work of Disabled Employees," CAM Working Papers 2004-24, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Morefield Brant & Ribar David C. & Ruhm Christopher J., 2012.
"Occupational Status and Health Transitions,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 11(3), pages 1-29, March.
- Morefield, G. Brant & Ribar, David C. & Ruhm, Christopher J., 2011. "Occupational Status and Health Transitions," IZA Discussion Papers 5482, Institute for the Study of Labor (IZA).
- G. Brant Morefield & David C. Ribar & Christopher J. Ruhm, 2011. "Occupational Status and Health Transitions," NBER Working Papers 16794, National Bureau of Economic Research, Inc.
- Morefield, G. Brant & Ribar, David & Ruhm, Christopher, 2011. "Occupational Status and Health Transitions," Working Papers 11-4, University of North Carolina at Greensboro, Department of Economics.
- Kemptner, Daniel & Jürges, Hendrik & Reinhold, Steffen, 2010.
"Changes in Compulsory Schooling and the Causal Effect of Education on Health: Evidence from Germany,"
MEA discussion paper series
10200, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Kemptner, Daniel & Jürges, Hendrik & Reinhold, Steffen, 2011. "Changes in compulsory schooling and the causal effect of education on health: Evidence from Germany," Journal of Health Economics, Elsevier, vol. 30(2), pages 340-354, March.
- Stanislav Kolenikov & Gustavo Angeles, 2009. "Socioeconomic Status Measurement With Discrete Proxy Variables: Is Principal Component Analysis A Reliable Answer?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 128-165, 03.
- Wilson, Chris M & Oswald, Andrew J, 2005.
"How Does Marriage Affect Physical and Psychological Health? A Survey of the Longitudinal Evidence,"
The Warwick Economics Research Paper Series (TWERPS)
728, University of Warwick, Department of Economics.
- Wilson, Chris M. & Oswald, Andrew J., 2005. "How Does Marriage Affect Physical and Psychological Health? A Survey of the Longitudinal Evidence," IZA Discussion Papers 1619, Institute for the Study of Labor (IZA).
- Dana Goldman & Darius Lakdawalla, 2001. "Understanding Health Disparities Across Education Groups," NBER Working Papers 8328, National Bureau of Economic Research, Inc.
- Denis Bolduc & Bernard Fortin & France Labrecque & DPaul Lanoie, 2002. "Workers' Compensation, Moral Hazard and the Composition of Workplace Injuries," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 623-652.
- Arendt, Jacob Nielsen, 2008. "In sickness and in health--Till education do us part: Education effects on hospitalization," Economics of Education Review, Elsevier, vol. 27(2), pages 161-172, April.
- David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
- Høgelund, Jan & Holm, Anders & McIntosh, James, 2010. "Does graded return-to-work improve sick-listed workers' chance of returning to regular working hours?," Journal of Health Economics, Elsevier, vol. 29(1), pages 158-169, January.
- Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
- Michelle Rendall, 2010.
"Brain versus brawn: the realization of women's comparative advantage,"
IEW - Working Papers
491, Institute for Empirical Research in Economics - University of Zurich.
- Michelle Rendall, 2010. "Brain versus Brawn: The Realization of Women's Comparative Advantage," 2010 Meeting Papers 926, Society for Economic Dynamics.
- Johansson, Per & Palme, Marten, 2005. "Moral hazard and sickness insurance," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1879-1890, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.