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Labour Supply, Health and Caring - Evidence from the UK

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Author Info

  • David Madden

    (University College Dublin)

  • Ian Walker

    (University of Warwick)

Abstract

This paper investigates the impact of own-health,and that of others, on individual labour supply. We estimate a model of hours of caring and hours of work using a large micro dataset of UK households. We find that own ill health has a negative effect on wages for men but not women; being a carer has a negative effect on wages for women but not men; and that unobservables associated with caring are positively correlated with wages for men but not for women. We also find that own ill health has a strong negative effect on the labour supply of both men and women and a negative effect on their supply of caring. We also find that hours caring are responsive to wages for women.

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File URL: http://www.ucd.ie/economics/research/papers/1999/WP99.28.pdf
File Function: First version, 1999
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Bibliographic Info

Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 199928.

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Length: 40 pages
Date of creation: 19 Nov 1999
Date of revision:
Handle: RePEc:ucn:wpaper:199928

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Web page: http://www.ucd.ie/economics
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Related research

Keywords: Labour supply; health; disability;

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References

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  1. Madden, D., 1999. "Labour Market Discrimination on the Basis of Health: an Application to UK Data," Papers 99/13, College Dublin, Department of Political Economy-.
  2. Haveman, Robert & Wolfe, Barbara & Kreider, Brent & Stone, Mark, 1994. "Market work, wages, and men's health," Journal of Health Economics, Elsevier, vol. 13(2), pages 163-182, July.
  3. Anderson, Kathryn H. & Burkhauser, Richard V., 1984. "The importance of the measure of health in empirical estimates of the labor supply of older men," Economics Letters, Elsevier, vol. 16(3-4), pages 375-380.
  4. Stern, Steven, 1996. "Semiparametric estimates of the supply and demand effects of disability on labor force participation," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 49-70.
  5. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  6. Barmby, Tim & Charles, Sue, 1992. "Informal Care and Female Labour Supply," Scottish Journal of Political Economy, Scottish Economic Society, vol. 39(3), pages 288-301, August.
  7. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-51, July.
  8. Pezzin, Liliana E & Schone, Barbara Steinberg, 1997. "The Allocation of Resources in Intergenerational Households: Adult Children and Their Elderly Parents," American Economic Review, American Economic Association, vol. 87(2), pages 460-64, May.
  9. John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment," NBER Working Papers 5159, National Bureau of Economic Research, Inc.
  10. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
  11. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
  12. Jon A. Breslaw & Morton Stelcner, 1987. "The Effect of Health on the Labor Force Behavior of Elderly Men in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 490-517.
  13. Kathryn H. Anderson & Richard V. Burkhauser, 1985. "The Retirement-Health Nexus: A New Measure of an Old Puzzle," Journal of Human Resources, University of Wisconsin Press, vol. 20(3), pages 315-330.
  14. (*), Nigel Rice & Paul Contoyannis, 2001. "The impact of health on wages: Evidence from the British Household Panel Survey," Empirical Economics, Springer, vol. 26(4), pages 599-622.
  15. Haveman, Robert & de Jong, Philip & Wolfe, Barbara, 1991. "Disability Transfers and the Work Decision of Older Men," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 939-49, August.
  16. Parsons, Donald O, 1982. "The Male Labour Force Participation Decision: Health, Reported Health, and Economic Incentives," Economica, London School of Economics and Political Science, vol. 49(193), pages 81-91, February.
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Citations

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Cited by:
  1. Brenda Gannon & Brian Nolan, 2004. "Disability and Labour Force Participation in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 35(2), pages 135–155.
  2. Laura Crespo, 2006. "Caring For Parents And Employment Status Of European Mid-Life Women," Working Papers wp2006_0615, CEMFI.
  3. Brenda Gannon, 2004. "Disability and Labour Force Participation in Ireland 1995-2000," Economics, Finance and Accounting Department Working Paper Series n1431004, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.

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