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Market Work, Wages, and Men's Health

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Author Info
Robert Haveman
Mark Stone
Barbara Wolfe

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Abstract

In this paper, we investigate the complex interrelationships among worktime, wages and health identified in the Grossman model of the demand for health. We specify a 3-equation simultaneous model designed to capture the tune dependent character of these interrelationships, and estimate the model using 8 years of panel data on 882 males aged 22 to 71. The model is estimated using Hansen's generalized methods of moments imposing a weak set of conditions on the error tenn covariance structure. Using our data, we estimate simpler models with more restrictive assumptions commonly found in the literature, and find substantial differences between these estimates and those from the simultaneous model. For example, the positive relationship between worktime and health found in other studies disappears when the relevant simultaneities are accounted for. Our simultaneous estimates also suggest that worktime spent in environmentally adverse conditions are inversely related to health status, while job related physical exercise retards health deterioration.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3020.

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Date of creation: Jun 1989
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Publication status: published as Journal of Health Economics, vol. 13 (1994) pp. 163-182
Handle: RePEc:nbr:nberwo:3020

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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.:
  1. Luft, Harold S, 1975. "The Impact of Poor Health on Earnings," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 43-57, February. [Downloadable!] (restricted)
  2. Bartel, Ann & Taubman, Paul, 1979. "Health and Labor Market Success: The Role of Various Diseases," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 1-8, February. [Downloadable!] (restricted)
  3. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July. [Downloadable!] (restricted)
  4. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, December.
  5. Kemna, Harrie J. M. I., 1987. "Working conditions and the relationship between schooling and health," Journal of Health Economics, Elsevier, vol. 6(3), pages 189-210, September. [Downloadable!] (restricted)
  6. Chirikos, Thomas N & Nestel, Gilbert, 1985. "Further Evidence on the Economic Effects of Poor Health," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 61-69, February. [Downloadable!] (restricted)
  7. Wagstaff, Adam, 1986. "The demand for health : Some new empirical evidence," Journal of Health Economics, Elsevier, vol. 5(3), pages 195-233, September. [Downloadable!] (restricted)
  8. Paul J. Taubman & Sherwin Rosen, 1982. "Healthiness, Education, and Marital Status," NBER Working Papers 0611, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Lee, Lung-Fei, 1982. "Health and Wage: A Simultaneous Equation Model with Multiple Discrete Indicators," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 199-221, February. [Downloadable!] (restricted)
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  1. Jäckle, Robert & Himmler, Oliver, 2007. "Health and Wages - Panel data estimates considering selection and endogeneity," MPRA Paper 11578, University Library of Munich, Germany, revised Nov 2008. [Downloadable!]
    Other versions:
  2. Andrén, Daniela & Palmer, Edward, 2001. "The Effect Of Sickness On Earnings," Working Papers in Economics 45, Göteborg University, Department of Economics. [Downloadable!]
  3. J.M. Etienne & A. Skalli, 2003. "Health Status and Socio-Economic Inequalities : A Review of the French Litterature," Working Papers ERMES 0317, ERMES, University Paris 2. [Downloadable!]
  4. Lixin Cai, 2008. "Be Wealthy to Stay Healthy: An Analysis of Older Australians Using the HILDA Survey," Melbourne Institute Working Paper Series wp2008n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  5. Roberto Leon Gonzalez, . "A Panel Data Simultaneous Equation Model with a Dependent Categorical Variable and Selectivity," Discussion Papers 01/04, Department of Economics, University of York. [Downloadable!]
  6. Christina Beatty, Stephen Fothergill, Rob MacMillan, 2000. "A Theory of Employment, Unemployment and Sickness," Regional Studies, Taylor and Francis Journals, vol. 34(7), pages 617-630, October. [Downloadable!] (restricted)
  7. Jenny Williams & Christopher Skeels, 2006. "The Impact of Cannabis Use on Health," De Economist, Springer, vol. 154(4), pages 517-546, December. [Downloadable!] (restricted)
  8. Lixin Cai & Guyonne Kalb, 2004. "Health Status and Labour Force Participation: Evidence from the HILDA Data," Melbourne Institute Working Paper Series wp2004n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  9. Cecilia Albert & María A. Davia, 2004. "Salud, salarios y educación," Hacienda Pública Española, IEF, vol. 169(2), pages 11-34, June. [Downloadable!]
  10. Joop Hartog & Hessel Oosterbeek, 1997. "Health, Wealth and Happiness: Why pursue a Higher Education?," Tinbergen Institute Discussion Papers 97-034/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  11. Lixin Cai, 2007. "Effects of Health on Wages of Australian Men," Melbourne Institute Working Paper Series wp2007n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  12. Debra Sabatini Dwyer & Olivia S. Mitchell, 1998. "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," NBER Working Papers 6503, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Sarah Brown & Jenny Roberts & Karl Taylor, 2008. "Reservation Wages, Labour Market Participation And Health," Working Papers 2008002, The University of Sheffield, Department of Economics, revised Feb 2008. [Downloadable!]
  14. Roberto Montero Granados & José Jesús Martín Martín & Juan de Dios Jiménez Aguilera, 2008. "Horizontal Inequity in Access to Healthcare Services and Educational Level in Spain," FEG Working Paper Series 08/03, Faculty of Economics and Business (University of Granada). [Downloadable!]
  15. David Madden & Ian Walker, 1999. "Labour Supply, Health and Caring - Evidence from the UK," Working Papers 199928, School Of Economics, University College Dublin. [Downloadable!]
    Other versions:
  16. Andrén, Daniela & Palmer, Edward, 2004. "The Effect of Past Sickness on Current Earnings in Sweden," Working Papers in Economics 138, Göteborg University, Department of Economics. [Downloadable!]
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