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Effects Of Health And Chronic Diseases On Labour Force Participation Of Older Working-Age Australians

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  • LIXIN CAI
  • CHANGXIN CONG

Abstract

This study examines the effects of general health and chronic diseases on the labour force participation of older working-age Australians. To account for potential endogeneity of health status, a simultaneous equation model is estimated and chronic diseases are used as instrumental variables. The effects of chronic diseases on labour force participation are assessed indirectly using the parameters estimated from the simultaneous equation model. The results show that both health status and chronic diseases have significant effects on labour force participation. It also appears that the effects of chronic diseases are more accurately estimated from the simultaneous equation model than from a single equation labour force participation model. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd/University of Adelaide and Flinders University.

Suggested Citation

  • Lixin Cai & Changxin Cong, 2009. "Effects Of Health And Chronic Diseases On Labour Force Participation Of Older Working-Age Australians ," Australian Economic Papers, Wiley Blackwell, vol. 48(2), pages 166-182, June.
  • Handle: RePEc:bla:ausecp:v:48:y:2009:i:2:p:166-182
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    Cited by:

    1. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo, 2016. "Health status and labor force participation: evidence for urban low and middle income individuals in Colombia," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 15(1), pages 33-55, April.
    2. Callander, Emily Joy & Schofield, Deborah J. & Shrestha, Rupendra N., 2011. "Multi-dimensional poverty in Australia and the barriers ill health imposes on the employment of the disadvantaged," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 736-742.

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