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Subjective Health Measures, Reporting Errors and Endogeneity in the Relationship Between Health and Work

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Author Info
Maarten Lindeboom () (University of Amsterdam - Department of Economics)
Marcel Kerkhofs () (OSA Institute for Labour Studies, Tilburg University)
Abstract

This paper explores the interrelation between health and work decisions of older workers. For this, two issues are of relevance. Firstly, health and work may be endogenously related because of direct effects of health on work and vice versa, and because of unobservables that may relate observed health and work outcomes. Secondly, social surveys usually contain self-assessed health measures and research indicates that these may be affected by endogenous, state-dependent, reporting behavior. A solution to the 'Health and Retirement Nexus' requires an integrated model for work decisions, health production and health-reporting mechanisms. We formulate such a model and estimate it on a longitudinal dataset of Dutch elderly.

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Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 46.

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Length: 47
Date of creation: 16 Feb 2004
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Handle: RePEc:rtv:ceisrp:46

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Related research
Keywords: Work; health; endogeneity; subjective health; state-dependent reporting errors;

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Find related papers by JEL classification:
I12 - Health, Education, and Welfare - - Health - - - Health Production
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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References listed on IDEAS
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  13. Hugo Benitez-Silva, Moshe Buchinsky, Hiu-Man Chan, Sofia Cheidvasser and John Rust, 1999. "How Large is the BIas in Self-Reported Disability Status?," Department of Economics Working Papers 99-02, Stony Brook University, Department of Economics. [Downloadable!]
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  15. Ehrlich, Isaac & Chuma, Hiroyuki, 1990. "A Model of the Demand for Longevity and the Value of Life Extension," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 761-82, August. [Downloadable!] (restricted)
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  18. Sickles, Robin C & Yazbeck, Abdo, 1998. "On the Dynamics of Demand for Leisure and the Production of Health," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(2), pages 187-97, April.
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