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

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  • M. Christopher Auld

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.

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  • 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, September.
    • Handle: RePEc:wly:hlthec:v:11:y:2002:i:6:p:471-483
    DOI: 10.1002/hec.753
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    1. García-Gómez, Pilar & Labeaga, José M. & Oliva, Juan, 2012. "Employment and wages of people living with HIV/AIDS," MERIT Working Papers 2012-043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Juan Oliva, 2010. "Labour participation of people living with HIV/AIDS in Spain," Health Economics, John Wiley & Sons, Ltd., vol. 19(4), pages 491-500, April.
    3. Huynh, Kim P. & Jung, Juergen, 2015. "Subjective health expectations," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 693-711.
    4. Ayona Bhattacharjee, 2023. "Does Population Longevity Attract Foreign Direct Investments in Developing Countries?," Global Business Review, International Management Institute, vol. 24(2), pages 393-410, April.
    5. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    6. Luz María Peña Longobardo & Juan Oliva-Moreno, 2018. "Differences in labour participation between people living with HIV and the general population: Results from Spain along the business cycle," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-13, April.
    7. Beatriz Rodríguez-Sánchez & Luz María Peña-Longobardo & Juan Oliva-Moreno, 2022. "The employment situation of people living with HIV: a closer look at the effects of the 2008 economic crisis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(3), pages 485-497, April.
    8. Galárraga, Omar & Rana, Aadia & Rahman, Momotazur & Cohen, Mardge & Adimora, Adaora A. & Sosanya, Oluwakemi & Holman, Susan & Kassaye, Seble & Milam, Joel & Cohen, Jennifer & Golub, Elizabeth T. & Met, 2018. "The effect of unstable housing on HIV treatment biomarkers: An instrumental variables approach," Social Science & Medicine, Elsevier, vol. 214(C), pages 70-82.

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