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Disentangling the effects of morbidity and life expectancy on labor market outcomes

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  • M. Christopher Auld

    (Department of Economics, University of Calgary, Canada)

Abstract

Using a unique longitudinal dataset tracking the experiences of patients diagnosed with HIV+ disease, this paper develops and estimates a model capable of recovering the effect of revisions in life expectancy on labor market outcomes. The data allow us to estimate the effect of changes in health status (as objectively measured by CD4 counts) and the impact of learning that one is HIV+, which we interpret as a negative shock to life expectancy. Both parametric and distribution-free models robustly indicate that decreases in health have little effect on labor demand but decrease probability of employment. We conclude that, in this sample, negative association between income and health is attributable mostly to the effect of altered incentives induced by changes in life expectancy. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • M. Christopher Auld, 2002. "Disentangling the effects of morbidity and life expectancy on labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 471-483.
  • Handle: RePEc:wly:hlthec:v:11:y:2002:i:6:p:471-483
    DOI: 10.1002/hec.753
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    References listed on IDEAS

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    Cited by:

    1. García-Gómez, Pilar & Labeaga, José M. & Oliva, Juan, 2012. "Employment and wages of people living with HIV/AIDS," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Huynh, Kim P. & Jung, Juergen, 2015. "Subjective health expectations," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 693-711.

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