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Effects of Health on Wages of Australian Men

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  • LIXIN CAI

Abstract

This study uses the Household, Income and Labour Dynamics in Australia (HILDA) survey to investigate the effect of health on wages of working‐age Australian men. A simultaneous equation model of health and wages is estimated to account for the endogeneity of health. The results confirm the findings in the literature that health has a significant and positive effect on wages; it is also found that treating health as exogenous underestimates the effect substantially. Although the reverse effect of wages on health is found to be insignificant, there is evidence on the endogeneity of health arising from unobserved factors.

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  • Lixin Cai, 2009. "Effects of Health on Wages of Australian Men," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 290-306, September.
  • Handle: RePEc:bla:ecorec:v:85:y:2009:i:270:p:290-306
    DOI: 10.1111/j.1475-4932.2009.00552.x
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    Cited by:

    1. 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.
    2. Yolanda Pena-Boquete & Manuel Flores, 2013. "Earnings returns to education, experience and health: Evidence from EU-SILC," ERSA conference papers ersa13p1169, European Regional Science Association.
    3. 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).
    4. Gail Pacheco & Don J. Webber, 2011. "Employment propensity: The roles of mental and physical health," Working Papers 2011-01, Auckland University of Technology, Department of Economics.
    5. Manuel Flores & Melchor Fernández & Yolanda Pena-Boquete, 2020. "The impact of health on wages: evidence from Europe before and during the Great Recession," Oxford Economic Papers, Oxford University Press, vol. 72(2), pages 319-346.
    6. Preety Srivastava & Gang Chen & Anthony Harris, 2017. "Oral Health, Dental Insurance and Dental Service use in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 35-53, January.
    7. Théophile Azomahou & Bity Diene & Mbaye Diene & Luc Soete, 2015. "Optimal health investment and preference structure," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(3), pages 521-565, November.
    8. Emily J. Callander & Deborah J. Schofield, 2015. "Multidimensional Poverty and Health Status as a Predictor of Chronic Income Poverty," Health Economics, John Wiley & Sons, Ltd., vol. 24(12), pages 1638-1643, December.
    9. Merna Mohamed Esmat Hefnawi & Hebatallah Ghoneim, 2020. "Human Capital and Economic Growth in Egypt," Proceedings of Business and Management Conferences 10112451, International Institute of Social and Economic Sciences.
    10. Fernández-Val, Iván & Savchenko, Yevgeniya & Vella, Francis, 2017. "Evaluating the role of income, state dependence and individual specific heterogeneity in the determination of subjective health assessments," Economics & Human Biology, Elsevier, vol. 25(C), pages 85-98.
    11. Manuel Flores & Adriaan Kalwij, 2019. "What Do Wages Add to the Health‐Employment Nexus? Evidence from Older European Workers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(1), pages 123-145, February.
    12. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.
    13. Nerina Vecchio & Paul Scuffham, 2009. "Mental Health and Hours Worked Among Nurses," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(3), pages 299-320.

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