Health and Wages - Panel data estimates considering selection and endogeneity
AbstractThis paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP) we find the health variable to suffer from measurement error and a number of tests provide evidence that selection corrections are necessary. Good health leads to higher wages for men, while there appears to be no significant effect for women. Contingent on the method of estimation, healthy males are estimated to earn between 1.3% and 7.8% more than those in poor health.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11578.
Date of creation: Feb 2007
Date of revision: Nov 2008
health; wages; fixed effects; sample selection; instrumental variables;
Other versions of this item:
- Robert Jäckle & Oliver Himmler, 2010. "Health and Wages: Panel Data Estimates Considering Selection and Endogeneity," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
- Robert Jäckle, 2007. "Health and Wages - Panel data estimates considering selection and endogeneity," Ifo Working Paper Series Ifo Working Paper No. 43, Ifo Institute for Economic Research at the University of Munich.
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- J4 - Labor and Demographic Economics - - Particular Labor Markets
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- I1 - Health, Education, and Welfare - - Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-18 (All new papers)
- NEP-HEA-2008-11-18 (Health Economics)
- NEP-LAB-2008-11-18 (Labour Economics)
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