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Market work, wages, and men's health

  • Haveman, Robert
  • Wolfe, Barbara
  • Kreider, Brent
  • Stone, Mark

In this paper, we investigate the complex interrelationships among worktime, wages and health identified in the Grossman model of the demand for health. We specify a 3-equation simultaneous model designed to capture the tune dependent character of these interrelationships, and estimate the model using 8 years of panel data on 882 males aged 22 to 71. The model is estimated using Hansen's generalized methods of moments imposing a weak set of conditions on the error term covariance structure. Using our data, we estimate simpler models with more restrictive assumptions commonly found in the literature, and find substantial differences between these estimates and those from the simultaneous model. For example, the positive relationship between worktime and health found in other studies disappears when the relevant simultaneities are accounted for. Our simultaneous estimates also suggest that worktime spent in environmentally adverse conditions are inversely related to health status, while job related physical exercise retards health deterioration.

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Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 13 (1994)
Issue (Month): 2 (July)
Pages: 163-182

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Handle: RePEc:eee:jhecon:v:13:y:1994:i:2:p:163-182
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505560

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  1. Paul J. Taubman & Sherwin Rosen, 1980. "Healthiness, Education, and Marital Status," NBER Working Papers 0611, National Bureau of Economic Research, Inc.
  2. Lee, Lung-Fei, 1982. "Health and Wage: A Simultaneous Equation Model with Multiple Discrete Indicators," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 199-221, February.
  3. Luft, Harold S, 1975. "The Impact of Poor Health on Earnings," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 43-57, February.
  4. Leigh, J. Paul, 1983. "Direct and indirect effects of education on health," Social Science & Medicine, Elsevier, vol. 17(4), pages 227-234, January.
  5. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, October.
  6. Chirikos, Thomas N & Nestel, Gilbert, 1985. "Further Evidence on the Economic Effects of Poor Health," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 61-69, February.
  7. Kemna, Harrie J. M. I., 1987. "Working conditions and the relationship between schooling and health," Journal of Health Economics, Elsevier, vol. 6(3), pages 189-210, September.
  8. Wagstaff, Adam, 1986. "The demand for health : Some new empirical evidence," Journal of Health Economics, Elsevier, vol. 5(3), pages 195-233, September.
  9. Bartel, Ann & Taubman, Paul, 1979. "Health and Labor Market Success: The Role of Various Diseases," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 1-8, February.
  10. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
  11. Muurinen, Jaana-Marja, 1982. "Demand for health: A generalised Grossman model," Journal of Health Economics, Elsevier, vol. 1(1), pages 5-28, May.
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