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The impact of diabetes on employment: genetic IVs in a bivariate probit

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  • H. Shelton Brown

    (University of Texas School of Public Health, School of Public Health Building (RAHC), Texas, USA)

  • José A. Pagán
  • Elena Bastida

    (Department of Sociology and Center on Aging and Health, University of Texas-Pan American, Texas, USA)

Abstract

Diabetes has been shown to have a detrimental impact on employment and labor market productivity, which results in lost work days and higher mortality|disability. This study utilizes data from the Border Epidemiologic Study on Aging to analyze the endogeneity of diabetes in an employment model. We use family history of diabetes as genetic instrumental variables. We show that assuming that diabetes is an exogenous variable results in an overestimate (underestimate) of the negative impact of diabetes on female (male) employment. Our results are particularly relevant in the case of populations where genetic predisposition has an important role in the etiology of diabetes. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • H. Shelton Brown & José A. Pagán & Elena Bastida, 2005. "The impact of diabetes on employment: genetic IVs in a bivariate probit," Health Economics, John Wiley & Sons, Ltd., vol. 14(5), pages 537-544.
  • Handle: RePEc:wly:hlthec:v:14:y:2005:i:5:p:537-544 DOI: 10.1002/hec.942
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    References listed on IDEAS

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    1. Elena Bastida & José A. Pagán, 2002. "The impact of diabetes on adult employment and earnings of Mexican Americans: Findings from a community based study," Health Economics, John Wiley & Sons, Ltd., vol. 11(5), pages 403-413.
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    4. Kahn, Matthew E, 1998. "Health and Labor Market Performance: The Case of Diabetes," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 878-899, October.
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    Cited by:

    1. Abid A. Burki & Mushtaq A. Khan & Sobia Malik, 2015. "From Chronic Disease to Food Poverty: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(1), pages 17-33.
    2. Edward C. Norton & Euna Han, 2008. "Genetic information, obesity, and labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 17(9), pages 1089-1104.
    3. Chatterji, Pinka & Joo, Heesoo & Lahiri, Kajal, 2017. "Diabetes and labor market exits: Evidence from the Health & Retirement Study (HRS)," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 100-110.
    4. Morris, Stephen, 2007. "The impact of obesity on employment," Labour Economics, Elsevier, vol. 14(3), pages 413-433, June.
    5. Antonella D’Agostino & Andrea Regoli, 2013. "Life Conditions and Opportunities of Young Adults: Evidence from Italy in European Comparative Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1205-1235, September.
    6. Balia, Silvia & Jones, Andrew M., 2008. "Mortality, lifestyle and socio-economic status," Journal of Health Economics, Elsevier, vol. 27(1), pages 1-26, January.
    7. Peter Haan & Michal Myck, 2009. "Dynamics of Poor Health and Non-employment," SOEPpapers on Multidisciplinary Panel Data Research 195, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Persson, Sofie & Dahlquist, Gisela & Gerdtham, Ulf-G. & Steen Carlsson, Katarina, 2014. "Childhood Health and Labor Market Outcomes in the Case of Type 1 Diabetes," Working Papers 2014:43, Lund University, Department of Economics.
    9. Ehsan Latif, 2009. "The impact of diabetes on employment in Canada," Health Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 577-589.
    10. Minor, Travis & MacEwan, Joanna P., 2016. "A comparison of diagnosed and undiagnosed diabetes patients and labor supply," Economics & Human Biology, Elsevier, vol. 20(C), pages 14-25.
    11. Haan, Peter & Myck, Michal, 2009. "Dynamics of health and labor market risks," Journal of Health Economics, Elsevier, vol. 28(6), pages 1116-1125, December.
    12. Seuring, Till & Goryakin, Yevgeniy & Suhrcke, Marc, 2015. "The impact of diabetes on employment in Mexico," Economics & Human Biology, Elsevier, vol. 18(C), pages 85-100.
    13. Rowell, David & Connelly, Luke, 2010. "Labour market outcomes for people with a spinal cord injury," Economics & Human Biology, Elsevier, vol. 8(2), pages 223-232, July.
    14. Minor, Travis, 2013. "An investigation into the effect of type I and type II diabetes duration on employment and wages," Economics & Human Biology, Elsevier, vol. 11(4), pages 534-544.
    15. Seuring, Till & Serneels, Pieter & Suhrcke, Marc, 2016. "The Impact of Diabetes on Labor Market Outcomes in Mexico: A Panel Data and Biomarker Analysis," IZA Discussion Papers 10123, Institute for the Study of Labor (IZA).
    16. Till Seuring & Olga Archangelidi & Marc Suhrcke, 2015. "The Economic Costs of Type 2 Diabetes: A Global Systematic Review," PharmacoEconomics, Springer, vol. 33(8), pages 811-831, August.
    17. José A. Pagán & Andrea Puig & Beth J. Soldo, 2007. "Health insurance coverage and the use of preventive services by Mexican adults," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1359-1369.
    18. Persson, Sofie & Gerdtham, Ulf-G. & Steen Carlsson, Katarina, 2016. "Labor market consequences of childhood onset type 1 diabetes," Economics & Human Biology, Elsevier, vol. 23(C), pages 180-192.
    19. Eric Delattre & Richard Moussa & Mareva Sabatier, 2015. "Health condition and job status interactions: Econometric evidence of causality from a French longitudinal survey," THEMA Working Papers 2015-19, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    20. Zhang, Xiaohui & Zhao, Xueyan & Harris, Anthony, 2009. "Chronic diseases and labour force participation in Australia," Journal of Health Economics, Elsevier, vol. 28(1), pages 91-108, January.
    21. Bergemann, Annette & Grönqvist, Erik & Gudbjörnsdottir, Soffia, 2011. "The effects of job displacement on the onset and progression of diabetes," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48695, Verein für Socialpolitik / German Economic Association.
    22. Liu, Xiaoou & Zhu, Chen, 2014. "Will knowing diabetes affect labor income? Evidence from a natural experiment," Economics Letters, Elsevier, vol. 124(1), pages 74-78.
    23. Veronesi, Marcella, 2007. "Environmental Risk Factors, Health and the Labor Market Response of Married Men and Women in the United States," Working Papers 98552, University of Maryland, Department of Agricultural and Resource Economics.
    24. Kavetsos, Georgios, 2011. "The impact of physical activity on employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 775-779.

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