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Health status and labour force status of older working-age Australian men

  • Lixin Cai

    ()

    (University of Melbourne)

  • Guyonne Kalb

    (University of Melbourne)

This research uses the Household, Income and Labour Dynamics in Australia (HILDA) Survey to investigate the impacts of health on labour force status of older working-age Australian men. We estimate a model that exploits the longitudinal nature of the data and takes the correlation between the two error terms in the health and labour force status equations into account. The results show that controlling for unobserved heterogeneity and the correlation between the two equations is important. It is also found that any restriction on the correlation between the two equations appears to lead to underestimation of the direct health effects.

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Article provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its journal Australian Journal of Labour Economics.

Volume (Year): 10 (2007)
Issue (Month): 4 (December)
Pages: 227-252

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Handle: RePEc:ozl:journl:v:10:y:2007:i:4:p:227-252
Contact details of provider: Web page: http://business.curtin.edu.au/research/publications/journals/ajle/
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  15. Blau, David M. & Riphahn, Regina T., 1998. "Labor Force Transitions of Older Married Couples in Germany," IZA Discussion Papers 5, Institute for the Study of Labor (IZA).
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  18. Lixin Cai & Guyonne Kalb, 2004. "Health Status and Labour Force Participation: Evidence from the HILDA Data," Melbourne Institute Working Paper Series wp2004n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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  25. Steven Stern, 1989. "Measuring the Effect of Disability on Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 361-395.
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  27. Coile Courtney, 2004. "Retirement Incentives and Couples' Retirement Decisions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-30, July.
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  29. Keane, Michael, 1993. "Simulation estimation for panel data models with limited dependent variables," MPRA Paper 53029, University Library of Munich, Germany.
  30. Campolieti, Michele, 2002. "Disability and the labor force participation of older men in Canada," Labour Economics, Elsevier, vol. 9(3), pages 405-432, July.
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