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Labour market discrimination on the basis of health: an application to UK data

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  • David Madden

Abstract

An analysis of wage discrimination is carried out on the basis of health on UK data with a number of important modifications. First selection is controlled for into both health and labour market status. Second the direct effect of health upon productivity is accounted for and third, discrimination is examined with regard to participation as well as wages. The question of selection into health status is found to be of little empirical importance but taking account of selection into labour market status and the direct impact of health upon productivity leads to a fall in measured discrimination. The paper finds similar results with regard to participation. It is also examined whether these effects differ across age and gender.

Suggested Citation

  • David Madden, 2004. "Labour market discrimination on the basis of health: an application to UK data," Applied Economics, Taylor & Francis Journals, vol. 36(5), pages 421-442.
  • Handle: RePEc:taf:applec:v:36:y:2004:i:5:p:421-442 DOI: 10.1080/00036840410001682133
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    References listed on IDEAS

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    1. Barbara L. Wolfe & Steven C. Hill, 1995. "The Effect of Health on the Work Effort of Single Mothers," Journal of Human Resources, University of Wisconsin Press, pages 42-62.
    2. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
    3. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416 Elsevier.
    4. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.
    5. B. Wolfe & S. C. Hill, "undated". "The effect of health on the work effort of low-income single mothers," Institute for Research on Poverty Discussion Papers 979-92, University of Wisconsin Institute for Research on Poverty.
    6. Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, pages 173-193.
    7. Chowdhury, Gopa & Nickell, Stephen, 1985. "Hourly Earnings in the United States: Another Look at Unionization, Schooling, Sickness, and Unemployment Using PSID Data," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 38-69, January.
    8. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, pages 5-21.
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    Citations

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    Cited by:

    1. Andrew M. Jones & Eddy van Doorslaer & Teresa Bago d'Uva & Silvia Balia & Lynn Gambin & Cristina Hernández Quevedo & Xander Koolman & Nigel Rice, 2006. "Health and Wealth: Empirical Findings and Political Consequences," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(s1), pages 93-112, May.
    2. Haile, Getinet Astatike, 2009. "Workplace Disability Diversity and Job-Related Well-Being in Britain: A WERS2004 Based Analysis," IZA Discussion Papers 3993, Institute for the Study of Labor (IZA).
    3. Eirini-Christina Saloniki & Amanda Gosling, 2012. "Point identification in the presence of measurement error in discrete variables: application - wages and disability," Studies in Economics 1214, School of Economics, University of Kent.
    4. Chung Choe, 2013. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," Korean Economic Review, Korean Economic Association, pages 211-233.
    5. David Madden, 2010. "Gender Differences in Mental Well-Being: a Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(1), pages 101-114, October.
    6. David (David Patrick) Madden & Ian Walker, 1999. "Labour supply, health and caring : evidence from the UK," Working Papers 199928, School of Economics, University College Dublin.
    7. Gannon, Brenda & Munley, Margaret, 2009. "Age and disability: Explaining the wage differential," Social Science & Medicine, Elsevier, pages 47-55.
    8. Chung Choe, 2013. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," Korean Economic Review, Korean Economic Association, pages 211-233.
    9. BALDWIN Marjorie L. & CHOE Chung, 2010. "New Estimates of Disability-Related Wage Discrimination with Controls for Job Demands," LISER Working Paper Series 2010-14, LISER.
    10. repec:mpr:mprres:341e1dba100a4d988613006cb2957100 is not listed on IDEAS
    11. Jones, Melanie K. & Latreille, Paul L. & Sloane, Peter J., 2007. "Disability and Work: A Review of the British Evidence," Estudios de Economía Aplicada, Estudios de Economía Aplicada, pages 473-498.
    12. Ben Halima, Mohamed Ali & Rococo, Emeline, 2014. "Wage differences according to health status in France," Social Science & Medicine, Elsevier, pages 260-268.
    13. CHOE, Chung & BALDWIN, Marjorie, 2011. "Estimates of Wage Discrimination Against Workers with Sensory Disabilities, with Controls for Job Demands," MPRA Paper 36242, University Library of Munich, Germany.
    14. Haile, Getinet Astatike, 2016. "Workplace Disability: Whose Wellbeing Does It Affect?," IZA Discussion Papers 10102, Institute for the Study of Labor (IZA).
    15. repec:mpr:mprres:8112 is not listed on IDEAS
    16. Cochard, François & Couprie, Hélène & Hopfensitz, Astrid, 2015. "What if women earned more than their spouses? An experimental investigation of work-division in couples," IAST Working Papers 15-26, Institute for Advanced Study in Toulouse (IAST), revised Jan 2017.
    17. Pagán, Ricardo, 2013. "Time allocation of disabled individuals," Social Science & Medicine, Elsevier, pages 80-93.
    18. Pagan, Ricardo, 2011. "Ageing and disability: Job satisfaction differentials across Europe," Social Science & Medicine, Elsevier, pages 206-215.
    19. Haile, Getinet Astatike, 2009. "Unhappy Working with Men? Workplace Gender Diversity and Employee Job-Related Well-Being in Britain: A WERS2004 Based Analysis," IZA Discussion Papers 4077, Institute for the Study of Labor (IZA).
    20. Jones, Melanie K., 2006. "Is there employment discrimination against the disabled?," Economics Letters, Elsevier, vol. 92(1), pages 32-37, July.

    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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