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The Effect of Health on the Labor Force Behavior of Elderly Men in Canada

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  • Jon A. Breslaw
  • Morton Stelcner

Abstract

This paper estimates a model of the labor force behavior of elderly males in Canada, paying explicit attention to the influence of health. The authors construct a health index using data from the Canada Health Survey. We estimate an earnings equation for full-year, full-time participants to obtain the potential earnings of each individual. We then examine four labor force states, using a hierarchical elimination-by-aspects (HEBA) model. Our results suggest that health is as important as potential earnings in determining the labor force behavior of men in Canada.

Suggested Citation

  • Jon A. Breslaw & Morton Stelcner, 1987. "The Effect of Health on the Labor Force Behavior of Elderly Men in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 490-517.
  • Handle: RePEc:uwp:jhriss:v:22:y:1987:i:4:p:490-517
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    References listed on IDEAS

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    1. Smith, J.P. & Thomas, D., 1993. "On the Road: Marriage and Mortality in Malaysia," Papers 93-11, RAND - Labor and Population Program.
    2. Segal, Uzi, 1987. "The Ellsberg Paradox and Risk Aversion: An Anticipated Utility Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 175-202, February.
    3. Hausman, Jerry A & Wise, David A, 1979. "Attrition Bias in Experimental and Panel Data: The Gary Income Maintenance Experiment," Econometrica, Econometric Society, vol. 47(2), pages 455-473, March.
    4. James P. Smith & Duncan Thomas, 1998. "On the Road: Marriage and Mobility in Malaysia," Journal of Human Resources, University of Wisconsin Press, pages 805-832.
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    Cited by:

    1. Madden, D. & Walker, I., 1999. "Labour Supply, Health and Caring: Evidence from the UK," Papers 99/28, College Dublin, Department of Political Economy-.
    2. Maarten Lindeboom, 2012. "Health and Work of Older Workers," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 3 Edward Elgar Publishing.
    3. Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The effect of health changes and long-term health on the work activity of older Canadians," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 999-1018.
    4. Campolieti, Michele, 2002. "Disability and the labor force participation of older men in Canada," Labour Economics, Elsevier, vol. 9(3), pages 405-432, July.
    5. Lynn McDonald & Peter Donahue & Brooke Moore, 1998. "The Economic Casualties of Retiring Because of Poor Health," Independence and Economic Security of the Older Population Research Papers 29, McMaster University.
    6. Rena M. Conti & Ernst R. Berndt & Richard G. Frank, 2006. "Early Retirement and Public Disability Insurance Applications: Exploring the Impact of Depression," NBER Working Papers 12237, National Bureau of Economic Research, Inc.
    7. Derek Hum & Wayne Simpson, 1996. "Canadians with Disabilities and the Labour Market," Canadian Public Policy, University of Toronto Press, vol. 22(3), pages 287-299, September.

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