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The impact of diabetes on employment in Canada

  • Ehsan Latif

    (Department of Economics, Thompson Rivers University, Kamloops, BC, Canada)

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    This paper examines the impact of diabetes on the employment of Canadian males and females ages 15-64. Using data from the National Population Health Survey (1998), it utilizes a recursive bivariate probit approach to take into account the potential endogeneity of diabetes in employment outcomes. The results suggest that treating diabetes as exogenous yields an over-estimation of its impact on male employment. The study finds that diabetes has a significant negative impact on female employment probability, but has no significant impact on that of non-white Canadians. An implication thus is that policy-makers should take endogeneity into account in estimating labor market costs of chronic diseases such as diabetes. Copyright © 2008 John Wiley & Sons, Ltd.

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    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 18 (2009)
    Issue (Month): 5 ()
    Pages: 577-589

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    Handle: RePEc:wly:hlthec:v:18:y:2009:i:5:p:577-589
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    1. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    2. 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.
    3. 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 878-99, October.
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